Meliana, Inc., has two support departments and two producing departments.Information for each department for the year is as follows:

Support DepartmentsProducing Departments

MaintenancePersonnelCuttingAssembly

Budgeted overheadcost$160,000$300,000$600,000$800,000

Direct laborhours16,0002,00040,00050,000

Machinehours40,00010,00090,00030,000

Number ofemployees1020140160

The company does not divide costs into fixed and variable components.

Maintenance costs are allocated based on machine hours, and personnel costs are allocated based on the number of employees.

Predetermined overhead rates for the producing departments are based on direct labor hours.

Required: (All answers should be supported by calculation; Round to two decimal places)

a.Meliana, Inc. allocates the support-department costs using the direct method.The predetermined overhead rate for the producing departments are:

b. Meliana, Inc. allocates the support-department costs using the stepdown method and starting with the Personnel Department.After, the allocation the total overhead costs of producing departments are:

c. Based on you calculation at (b), the predetermined overhead rate for the producing departments are: