QUESTION 3 The Central Valley Company has prepared department overhead budgets for budgeted-volume levels tefore allocations as follows: Management has docided that the most appropriate inventory costs are achieved by using individual department everbead rates. These rates are developed after support-department costs are allocated to operating departments. Bases for allocation are to be selected from the following: Required: 44 Using the step-lown method, allocale support-departiment costs. Develop overthead rates per direct manafacturing labor-hour for machining and assembly. Allocate the costs of the suppoit departanens in the order given in this problem. Use the allesution base for each support department you think is most appropriate. as Using the direct method, rcwork requircment 1. a) Based on the following information about twe jobs, determise the total overhead costs fee each job by using rates developed in (a) requirement 1 and (b) requirenent 2 . 49 The company evaluates the performunce of the eperating department managers on the basis of how well they munaged their bocal costs, including allocated costs. As the manager of the Machining Department, which allocation method would you prefer from the results obtained in requirements 1 and 2? Explain