The Sendai Co., Ltd., of Japan has budgeted costs in its various departments as follows for the coming year:

Factory Administration$270,000Custodial Services68,760Personnel28,840Maintenance45,200Machiningoverhead376,300Assemblyoverhead175,900Total cost$965,000

The company allocates service department costs to other departments in the order listed below.DepartmentNumber of

EmployeesTotal

Labor-

HoursSquare

Feet of

Space

OccupiedDirect

Labor-

HoursMachine-

HoursFactory Administration125,000Custodial Services43,0002,000Personnel55,0003,000Maintenance2522,00010,000Machining4030,00070,00020,00070,000Assembly6090,00020,00080,00010,000146150,000110,000100,00080,000

Machining and Assembly are operating departments; the other departments are service departments. Factory Administration is allocated on the basis of labor-hours; Custodial Services on the basis of square feet occupied; Personnel on the basis of number of employees; and Maintenance on the basis of 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 a machine-hours basis in Machining and a direct labor-hours basis in 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 answers to the nearest whole dollar amount.)