QUESTION 2) Hannover Manufacturing Company has three service departments and three production departments. The company budgeted its manufacturing overhead (MOH) cost for the upcoming year of 2020 as follows: Service Departments Production Departments Factory Repair and Management Cafeteria Maintenance Cutting Molding Finishing I. Allocation in USD) 425,000 375,000 95,000 700,000 920,000 485,000 Space occupied (m) 500 1,000 200 3,000 4,500 4,000 Number of employees 125 55 22 680 150 720 Maintenance hours 80 50 0 250 400 300 1,200 4,000 800 Machine hours (mh) Direct labor hours (dih) 3,500 1,800 2,500 The company allocates the MOH costs of "Factory Management Department" based on "space occupied"; MOH costs of "Cafeteria Department" based on "number of employees"; MOH costs of "Repair and Maintenance Department" based on "maintenance hours". Predetermined MOH rates are computed by using direct labor hours for the "Cutting" department; machine hours for the "Molding" department, and direct labor hours for the "Finishing" department. REQUIRED: a) Complete the second allocation by using "Direct Method". b) Calculate the predetermined MOH Rates for the three production departments. c) In the first week of the 2020, the company completed the Job Order SD-125. For this job order, what is the total cost of SD-125, if the primary costs are $187,583.50 in total, and if the following direct labor hours and machine hours were worked in the three production departments for this job order? DEPARTMENTS Direct Labor Machine Hours Hours Cutting 160 25 Molding 50 120 Finishing 95 12 d) Compute the cost of this Job Order, if the second allocation is made by using "Step- down Method". e) Now compare the results and give an advice to the management, which of the methods would be more appropriate for this company and why