The Sendai Co., Ltd. of Japan has budgeted costs in its various departments as follows for the coming year Factory Administration Custodial Services Personnel Maintenance Machining-overhead Assembly-overhead Total cost $1,029,860 185,588 36,888 132,034 621,026 467,284 $2,471,880 The company allocates service department costs to other departments in the order listed below. Department Factory Administration Custodial Services Personnel Maintenance Machining Assembly Square Total Feet of Direct Number of Labor Space Labor Machine- Employees Hours Occupied Hours Hours 27 11,100 11 15,500 10,50 16 13,800 5,600 56 46,800 19,800 72 80,000 90,000 82,000 143,400 188 200,000 30,000 240,000 95,600 290 396,100 166,480 322,000 239,800 Machining and Assembly are operating departments, the other departments are service departments. Factory Administration is allocated based on labor hours Custodial Services based on square feet occupied Personnel based on number of employees, and Maintenance based on machine-hours Required: 1. Allocate service department costs to consuming departments by the step down method. Then compute predetermined overhead rates in the operating departments using machine-hours as the allocation base in Machining and direct labor-hours as the allocation base in Assembly 2 Repeat (1) above, this time using the direct method. Again compute predetermined overhead rates in Machining and Assembly 3. Assume that the company doesn't bother with allocating service department costs but simply computes a single plantwide overhead rate that divides the total overhead costs (both service department and operating department costs) by the total direct labor-hours. Commute the nlanwide overhead rate 4- Homework Saved Machining and Assembly are operating departments, the other departments are service departments. Factory Administration is allocated based on labor-hours: Custodial Services based on square feet occupled; Personnel based on number of employees, and Maintenance based on machine-hours. Required: 1. Allocate service department costs to consuming departments by the step-down method. Then compute predetermined overhead rates in the operating departments using machine-hours as the allocation base in Machining and direct labor-hours as the allocation base in Assembly 2. Repeat (1) above, this time using the direct method. Again compute predetermined overhead rates in Machining and Assembly 3. Assume that the company doesn't bother with allocating service department costs but simply computes a single plantwide overhead rate that divides the total overhead costs (both service department and operating department costs) by the total direct labor hours. Compute the plantwide overhead rate. 4. Suppose a job requires machine and labor time as follows: Machining Department Assembly Department Total hours Machine Hours 225 16 241 Direct Labor Hours 35 81 116 Using the overhead rates computed in (1). 2) and (3) above, compute the amount of overhead cost that would be assigned to the job if the overhead rates were developed using the step-down method, the direct method, and the plantwide method. Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Required 4 Repeat requirement above, this time using the direct method. Again compute predetermined overhead rates in Machining and Assembly. (Please enter allocations from a department as negative and allocations to a department as positive. The line should add across to zero. Do not round intermediate calculations. Round Predetermined overhead rates' to 2 decimal places and other final answers to the nearest whole dollar amount.) Required 1 Required 2 Required 3 Required 4 Repeat requirement 1 above, this time using the direct method. Again compute predetermined overhead rates in Machining and Assembly. allocations from a department as negative and allocations to a department as positive. The line should add across to zero. Do not round inte calculations. Round "Predetermined overhead rates" to 2 decimal places and other final answers to the nearest whole dollar amount.) Factory Custodial Administration Services Personnel $ 1,029,860 $ 185,5885 36,088 Maintenance Machining Assembly S 132,034 Departmental costs before allocation Allocations Factory administration Custodial services Personnel Maintenance Total costs after allocation Predetermined overhead rate $ 1,029,860 $ 185,5885 36,088 S 132,034 S 0 $ 0