The Central Valley Company has prepared department overhead budgets for budgeted-volume levels before allocations as follows: (Click 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. Support Department Building and grounds Personnel General plant administration Cafeteria: operating loss Storeroom Allocation Base y n Data table ed n E Support departments: Building and grounds Personnel 90,000 1,000 General plant administration 29,980 Cafeteria: Operating loss 235 8,135 35 Us Storeroom $ 129,350 up Operating departments: g E un m in Machining Assembly Total for support and operating departments $ 32,000 51,100 83,100 $ 212,450 Print Done - =ignment Data table Part 1 of 8 Points: 0 of 1 po - X Direct Department Manufacturing Labor-Hours Number of Square Feet of Floor Space Indirect Manufacturing Employees Occupied Labor-Hours Number of Requisitions Building and grounds 0 0 0 0 0 Personnel" General plant administration 0 0 2,000 0 0 0 40 4,000 0 0 Cafeteria: operating loss 0 LC 5 3,000 3,000 0 Storeroom 0 5 1,000 1,000 0 Machining 7,000 21,000 Assembly 60 60 42,000 10,000 3,000 90 248,000 21,000 2,000 28,000 200 300,000 35,000 5,000 Total *Basis used is number of employees s Get more help Print Done 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 Job 88 22 Job 89 10 Assembly 5 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 profor from the results obtained in Print Done - Requirements a ovement rates per amet mannacturing labor our for machining unu 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 ac Machining Job 88 22 Job 89 10 Assembly 5 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. Print Done ani me