M20-18. Indirect Cost Allocation: Direct Method Charlie Manufacturing Company has two production departments, Melting and Molding. Direct gen- eral plant management and plant security costs benefit both production departments. Charlie allocates general plant management costs on the basis of the number of production employees and plant security costs on the basis of space occupied by the production departments. In November, the following over head costs were recorded: Melting Department direct overhead . . . . $350,000 . 180,000 70,000 General plant management Other pertinent data follow: Melting Molding 90 50 Space occupied (square feet).. 4,000 20,000 Required a. Prepare a schedule allocating general plant management costs and plant security costs to the Melting and Molding Departments. Determine ttl osts for he Mcting and Molding Depurtnments c. Assuming the Melting Department uses machine hours and the Molding Department uses hours to apply overhead to production, calculate the overhead rate for each production department