The managers of Yoyodyne Propulsion Systems are discussing ways to allocate the cost of support departments such as Quality Control and Maintenance to the Machining and Assembly production departments. To aid them in this discussion, the controller has provided the following information:

	Quality Control	Maintenance	Machining	Assembly	Total
Budgeted overhead costs before allocation	$350,000	$200,000	$400,000	$300,000	$1,250,000
Budgeted Machine-hours	-	-	50,000	-	50,000
Budgeted Direct manufacturing labor-hours	-	-	-	25,000	25,000
Budgeted units of service:
- Quality Control	-	7,000	21,000	7,000	35,000
- Maintenance	10,000	-	18,000	12,000	40,000

If Yoyodyne uses the direct method of allocating support department costs, the total support costs allocated to the Assembly Department would be closest to:

	a.	$87,500
	b.	$120,000
	c.	$167,500
	d.	$467,500

Using the direct method, the budgeted total overhead rate per machine-hour at Yoyodyne would be closest to:

	a.	$5.25
	b.	$15.65
	c.	$9.35
	d.	$8.00

If Yoyodyne uses the step-down method of allocating service costs beginning with Quality Control, the Maintenance costs allocated to the Assembly Department would be closest to:

	a.	$200,000
	b.	$162,000
	c.	$108,000
	d.	$70,000

If Yoyodyne uses the reciprocal method of allocating service costs, the complete reciprocated cost of Quality Control would be closest to:

	a.	$284,211
	b.	$336,842
	c.	$350,000
	d.	$421,053