Part 1 of 8 The Downhill Dash Company has prepared department overhead budgets for budgeted-volume levels before allocations as follows: (Click the icon to view the department overhead budgets.) X Data table Support departments: Building and grounds $ 8,000 Personnel 1,200 33,930 General plant administration Cafeteria: Operating loss 240 Storeroom 5,140 $ 48,510 Operating departments: Machining LA 36,000 49,000 Assembly 85,000 $ 133,510 Total for support and operating departments Print Done Management has decided that the most appropriate inventory costs are achieved by using individual department overhead rates. These rates are developed after support-department costs are allocated to operating departments. Bases for allocation are to be selected from the following: B (Click the icon to view the data.) Read the requirements. Data table Direct Manufacturing Labor-Hours Square Feet of Floor Space Occupied Number of Employees Indirect Manufacturing Labor-Hours Department Number of Requisitions 0 0 0 0 0 Building and grounds Personnels 0 0 4,000 0 0 0 35 3,500 0 0 General plant administration Cafeteria: operating loss 0 10 2,000 2,000 0 Storeroom 0 5 7,000 1,000 0 Machining 50 4,000 12,000 40,000 23,500 5,000 13,600 3,000 1,000 Assembly 100 16,000 200 80,000 Total 21,600 4,000 Basis used is number of employees Print Done Requirements 1. Using the step-down method, allocate support department costs. Develop overhead rates per direct manufacturing labor-hour for machining and assembly. Allocate the costs of the support departments in the order given in this problem. Use the allocation base for each support department you think is most appropriate. 2. Using the direct method, rework requirement 1. 3. Based on the following information about two jobs, determine the total overhead costs for each job by using rates developed in (a) requirement 1 and (b) requirement 2. Direct Manufacturing Labor-Hours Machining Assembly 5 Job 88 18 Job 89 7 21 4. The company evaluates the performance of the operating department managers on the basis of how well they managed their total costs, including allocated costs. As the manager of the Machining Department, which allocation method would you prefer from the results obtained in Print Done * Requirement 1. Using the step down method, allocate support department costs. Develop overhead rates per direct manufacturing labor-hour for machining and assembly. Allocate the costs of the support departments in the order given in this problem. Use the allocation base for each support department you think is most appropriate. Begin by selecting the allocation base for each support department. Allocation Base Support Department Building and grounds Personnel General plant administration Cafeteria: operating loss Storeroom