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The Downhill Dash Company has prepared department overhead budgets for budgeted-volume levels before allocations as follows: BClick the icon to view the department overhead budgets.) 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: (Click the icon to view the data.) Read the requirements 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 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 Job 88 24 8 Job 89 11 14 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 requirements 1 and 2? Explain. Data table Direct Manufacturing Number of Labor-Hours Employees 0 0 0 0 Department Building and grounds Personnel General plant administration Cafeteria: operating loss Storeroom 0 40 Square Feet of Indirect Floor Space Manufacturing Number of Occupied Labor-Hours Requisitions 0 0 0 1,250 0 0 16,000 0 0 2,000 2,000 0 1,000 3,000 0 27,500 12,000 6,000 2,250 33,000 2,000 50,000 50,000 8,000 0 10 5 0 Machining 8,000 32,000 40,000 55 140 Assembly 250 Total *Basis used is number of employees Print Done ol Data table en $ 4,000 un 4 al 900 Support departments: Building and grounds Personnel General plant administration Cafeteria: Operating loss Storeroom Operating departments: Machining old - 43,560 1,800 5,905 $ 56,165 ni g $ $ Assembly 30,000 51,100 81,100 $ 137,265 Total for support and operating departments ed Print Done