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

Factory Administration	$	631,400
Custodial Services		183,820
Personnel		46,638
Maintenance		136,942
Machiningoverhead		1,330,440
Assemblyoverhead		526,260
Total cost	$	2,855,500

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	30		5,300
Custodial Services	11	13,900	11,700
Personnel	18	13,800	6,600
Maintenance	51	49,300	13,400
Machining	80	90,000	105,000	66,000	195,000
Assembly	120	120,000	35,000	185,000	39,000
	310	287,000	177,000	251,000	234,000

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 doesnt 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:

	Machine- Hours		Direct Labor-Hours
Machining Department	220		33
Assembly Department	12		80
Total hours	232		113

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.