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

Factory Administration$1,063,750 Custodial Services 125,540 Personnel 39,520 Maintenance 155,140 Machiningoverhead 969,100 Assemblyoverhead 875,450 Total cost$3,228,500

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

Department	Number of Employees	Total Labor- Hours	Square Feet of Space Occupied	Direct Labor- Hours	Machine- Hours
Factory Administration	27		11,700
Custodial Services	11	13,400	2,900
Personnel	14	17,400	12,600
Maintenance	58	44,700	16,800
Machining	100	150,000	52,500	46,000	232,000
Assembly	150	200,000	17,500	229,000	29,000
	360	425,500	114,000	275,000	261,000

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.)

2.

Allocate service department costs to consuming departments by 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 answers to the nearest whole dollar amount.)

3.	Assume that the company doesnt bother with allocating service department costs but simply computes a single plantwide overhead rate based on total overhead costs (both service department and operating department costs) divided by total direct labor-hours. Compute the plantwide overhead rate. (Round your answer to 2 decimal places.)

4.	Suppose a job requires machine and labor time as follows:

	Machine-Hours	Direct Labor-Hours
Machining Department	270	29
Assembly Department	19	80
Total hours	289	109

Compute the amount of overhead cost that would be assigned to the job if the overhead rates were developed using the stepdown method, the direct method, and the plantwide method. (Round intermediate calculations to 2 decimal places and final calculations to the nearest whole dollar.)

Step Down Method

Direct Method

Plantwide Method