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

Factory Administration	$	604,240
Custodial Services		104,500
Personnel		56,386
Maintenance		201,244
Machiningoverhead		1,592,935
Assemblyoverhead		876,220
Total cost	$	3,435,525

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	30		11,900
Custodial Services	10	9,700	4,400
Personnel	14	19,600	12,000
Maintenance	56	52,300	16,400
Machining	100	100,000	50,000	134,000	216,750
Assembly	150	250,000	20,000	222,000	72,250
	360	431,600	114,700	356,000	289,000

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.) Custodial Administration Services Factory Personnel Maintenance Machining Assembly $1,592,935 $ Operating department costs Costs to be allocated Allocation: 876,220 604,240 $ 104,500 $ 56,386$ 201,244 Factory administration Custodial services Personnel Maintenance Total overhead after allocations 604,240 $ 104,500 $ 56,386$ 201,244 $ 1,592,935 S$ 876,220 Predetermined overhead rate