The Norther Plain 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 requirement Data table 9 $ Support departments: Building and grounds Personnel General plant administration Cafeteria: Operating loss Storeroom Operating departments: Machining 8,000 2,760 29,320 2,870 14,988 $ 57,938 $ 36,600 52,400 Assembly 89,000 $ 146,938 Total for support and operating departments Print Done Data table Square Feet of Direct Manufacturing Labor-Hours Floor Space Indirect Manufacturing Labor-Hours Number of Employees Department Occupied Number of Requisitions 0 0 0 0 0 0 0 3,000 0 0 0 60 18,000 0 0 Building and grounds Personnel General plant administration Cafeteria: operating loss Storeroom Machining 0 30 6.000 2,000 0 0 12 2.400 3,000 0 120 7,000 21,000 60.000 10,600 8,000 26,200 7,000 3,000 78 Assembly 28,000 300 100,000 39,200 10,000 Total aBasis used is number of employees Print Done 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 1 Job 89 4 17 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. The Norther Plain 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 requirement Data table 9 $ Support departments: Building and grounds Personnel General plant administration Cafeteria: Operating loss Storeroom Operating departments: Machining 8,000 2,760 29,320 2,870 14,988 $ 57,938 $ 36,600 52,400 Assembly 89,000 $ 146,938 Total for support and operating departments Print Done Data table Square Feet of Direct Manufacturing Labor-Hours Floor Space Indirect Manufacturing Labor-Hours Number of Employees Department Occupied Number of Requisitions 0 0 0 0 0 0 0 3,000 0 0 0 60 18,000 0 0 Building and grounds Personnel General plant administration Cafeteria: operating loss Storeroom Machining 0 30 6.000 2,000 0 0 12 2.400 3,000 0 120 7,000 21,000 60.000 10,600 8,000 26,200 7,000 3,000 78 Assembly 28,000 300 100,000 39,200 10,000 Total aBasis used is number of employees Print Done 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 1 Job 89 4 17 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