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: I. Allocation (in USD) Space occupied (m) Number of employees Maintenance hours Machine hours (mh) Direct labor hours. (dih) Factory Repair and Management Cafeteria Maintenance 425,000 375,000 95,000 500 1,000 55 50 125 Service Departments 80 200 22 0 Production Departments Cutting Molding Finishing 700,000 920,000 485,000 3,000 4,500 4,000 720 680 250 1,200 3,500 150 400 4,000 1,800 300 800 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 Cutting Molding Finishing Direct Labor Hours 160 50 95 Machine Hours 25 120 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?