The Plush Prairie 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: E: (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 Allocation Base Building and grounds Personnel General plant administration Cafeteria: operating loss Storeroom Help me solve this Etext pages Get more help Clear all Check answer Requirements g 9 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 Assembly Job 88 23 5 Job 89 8 16 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 - X Data table $ 30,000 1,624 Support departments: Building and grounds Personnel General plant administration Cafeteria: Operating loss Storeroom Operating departments: Machining Assembly Total for support and operating departments 14,565 3,090 248 49,527 31,000 50,500 81,500 $ 131,027 Print Done - Data table Indirect Manufacturing Labor-Hours 0 0 0 Number of Requisitions 0 0 0 Direct Square Feet of Manufacturing Number of Floor Space Department Labor-Hours Employees Occupied Building and grounds 0 0 0 Personnel 0 0 2,800 General plant administration 0 42 16,800 Cafeteria: operating loss 0 14 7,000 Storeroom 0 28 42,000 Machining 10,000 70 56,000 Assembly 5,000 126 125,400 15,000 280 Total 250,000 Basis used is number of employees 0 1,000 1,000 7,000 9,750 0 2,500 2,500 18,750 5,000 Print Done