The Direct Method Moon Furniture had the following budgeted overhead costs: Support Departments Production Departments Power Maintenance Grinding Assembly Cost $480,000 $300,000 $600,000 $800,000 # Employees 30 30 70 140 Floor space (sq ft) 5,000 2,000 9,000 6,000 Machine Hours 50,000 40,000 Traditionally, Power cost is allocated based on number of employees, and Maintenance cost is allocated based on floor space. Required: 1. Allocate the cost of the support departments to the production departments using the direct method. 2. Calculate the departmental overhead rate for Grinding and Assembly, assuming machine hour is the cost driver for both departments. 3. What if Power cost is allocated based on floor space, and Maintenance cost is allocated based on number of employees?