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

Factory Administration	$	605,530
Custodial Services		160,344
Personnel		54,799
Maintenance		99,237
Machiningoverhead		891,776
Assemblyoverhead		480,814
Total cost	$	2,292,500

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	25		14,500
Custodial Services	14	10,300	8,300
Personnel	18	14,000	11,100
Maintenance	53	44,400	15,600
Machining	72	100,000	75,000	132,000	186,000
Assembly	108	150,000	25,000	187,000	31,000
	290	425,500	149,500	319,000	217,000

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 operatin

**Need to figure out how to get the allocation numbers to multiply by.

2.	Allocate service department costs to consuming departments by the direct method. Again, compute predetermined overhead rates in Machining and Assembly. **Need to figure out how to get the allocation numbers to multiply by.