The Sendai Co., Ltd., of Japan has budgeted costs in its various departments as follows for the coming year: Factory Administration 480, 760 Custodial Services Personnel Maintenance 116,260 45, 602 141,258 B74, 528 1,181,192 $2,839, 600 Machining-overhead Assembly-overhead Total coat The company allocates service department costs to other departments in the order isted below Square Total Feet of Direct Number of Labor- Space Labor- Mac Department Employees Hours occupied Hours Hours Factory Administration Custodial Services Personnel Maintenance Machining Assembly 27 8,600 11,600 3, 600- 18 54 16,700 8,600 44,500 16,000 60,000 60,000 112, 000 180,000 96 70 150,000 20,000 227,000 36, 000 282,800 116,800 339,000 216,000 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. Compute the plantwide overhead rate. 4. Suppose a job requires machine and labor time as follows: Direct Machine- Labor- Hours Houra Machining Department Assembly Department Total hours 290 15 305 28 84 112 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. USE TWO DECIMAL PLACES actory before 480,760 $116,260 $45,602 $141,258 Factory 480,760)19,762 28,450 136,022) 10,015 067) 5,811 18,633 16,813 (252,515) 02,217 255,542 69,874 23,291 19,927 29,890 210,429 42,086 o $402,447 $350,809 services Total costs after SO S0 $O $1,276,969.00 Custodial Administration Services Factory i Personnel Maintenance Machining Assembly Departmental $45,602 $141,258 oosts before allocation 480,760 $116,20 Allocations Factory administration Custodial Personnel Maintenance Total costs after $480,760$116,260$45,602 $141,258 So Predetermined averhead rate per Plantwide overhead rate Overhead Step-down methad Direct method Plantwide method