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The Nonther Plain Company has prepared department overtead budgots for budgetod-volume lovels before alcoations as follons: (Click the icon to view the dopartmont overhead budgets.)

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The Nonther Plain Company has prepared department overtead budgots for budgetod-volume lovels before alcoations as follons: (Click the icon to view the dopartmont overhead budgets.) to operating departinents. Bases for allocaton are to be selected from the following. (Cick the con lo view the data.) Read the toquinitents acgport departinents in the order given in this protsem. Use the allocation base for eash support departenent yoe think is moat appropriale. Bopin by selecing the atlocation bate for each sucport deparenent. te inventory costs are achieved by using individual department overhead rates. These rates are hacolastad from tho follawina: Data table Data table 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. 4. The company evaluates the performance of the operating department Requirements 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. 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

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