Problem 4-25A Fairness and cost pool allocations Clement Manufacturing Company uses two departments to make its products. Department I is a c department that is machine intensive and uses very few employees. Machines cut and form parts and then place the finished parts on a conveyor belt that carries them to Department II, where into finished goods. The assembly department is labor intensive and parts into finished goods. The company's manufacturing facility incurs two significant overhead costs employee fringe benefits and utility costs. The annual costs o fringe benefits are $420,000 and utility costs are $300,000. The typical consumption patterns for the two departments are as follos: they are assembled requires many workers to assemble Department Department II Total 4,000 24,000 16,000 Machine hours used Direct labor hours used 20,000 2,000 14,000 The supervisor of each department receives a bonus based on how well the department controls ts. The company's current policy requires using a single allocation base (machine hours or labor hours) to allocate the total overhead cost of $720,000. Required a. Assume that you are the supervisor of Department I. Choose the allocation base that would mize your department's share of the total overhead cost. Calculate the amount of overhead tia would be allocated to both departments using the base that you selected. mini b. Assume that you are the supervisor of Department minimize your department's share of the total overhead cost. Calculate the amount ol that would be allocated to both departments using the base that you selected. would