The Southern Wind Company has prepared dead budget for buleted volume levels before sections as follows Click the icon to view the department overhead budete Management un decided to the west copropriate inventory costs and achieved by using individual when overhead cute. These rates are developed atur support dindon costs are located to operating winkel Boes dor to be selected from the following Click icon to view the data Bed Requirement 1. Using the top down method whecatu vipport divino con Develop overhead rutes per det muwacturing labour hour for machining and assembly Mecate the cont of the support divisione in the order geninis probleme the location base for each support division you think is most appropriate Degin by selecting the allocation base each support division Support Division Allocation les Building and grounds Spares of foor space occupied Personnel Number of me Generation Manufacturing our tours Cafeteroporting to Number of Storm Number one Using the step down method alocate suport division couts Allocate the cost of the opport division in the order given in this problem (Round indeed aloitates to the newscast and other computation to the neart whole dollar Use parents as who decidons by locating cous) Support Divine Operating Division The South Wed Company has propered vision overhead bodgata for budgeted wokone levels before allocations as follows: TE (Click the icon to view the department overhead budgets) Management as decided that the most accurate inventory cohe achieved by using individual divinin vetend rates. These rates are developed after support divin costs we allocated to operating division Bases for in wel be selected from the folosing Click the icon to view the data) Red 1g and Grounds 0000 Geral Plant Admin 21004 Cafeteria Operating Los 331 Storeroom Machining 1961 36300 Assembly 19000 720 Column Allocation of cost 0000 Bing in grounds Perse paari saalan C Strom Toate competing down The Southem Wind Company has prepared divisioned budget for budete volume levels befont actions as flow Click the icon to view the department head budgets) Manapun and honocided that the most appropriate bewertory costs are achieved by using individual dovoler eventuead tates. These rates are developed are support divieson cordes wat beseed to sperating dinion Basen due are to be Con to view the data) Total cost allocated to department Direct manufacturing lutou how manufacturing about how Machining Assembly Requirement. Using the direct the world 1 Use the direct metod oca por cohol ermal in tweed cost tocatons to the moment while dol Uwe pwethers or a minus when decretono by locating Sportin Genel Calter ng and Mant Osona A The Maching Cancun Moto During and Eldg and Grounds Personnel Plant Admin Operating Lose Storeroom Machine Assembly Costs incurred Action of costs Building and grounds Personnel General Calea Stocom Total budgeted costs operating di Develop vahead rates per direct manufacturing about how to maching decoded the trade theme Direct method Overhead rate per direct Total costa allocated to department Direct manufacturing labour hours manufacturing labour hour Machining Assembly Requirement 3. Based on the following information about we jobs, determine the total overhead costs for each job by using rates developed in (a) requirement 1 and (b) requirement Start by computing the total overhead costs for each job using the rates developed in (a) requirement 1 (the step-down method) (Round the total overhead costs to the nearest cent) (a) Step-down method Total Overhead Costs Job 88 Machining Assembly Total cost of Job 88 Job 88 Machining Assembly Total cost of Job 88 Job 89 Machining Assembly Total cost of Job 89 BE by Direct method Toul Overhead Co Job 8 Machining Assembly Totalco of Job 88 Job 09 Machining Assembly Total cost of job to Requirement. The company was the permance of the operating din managers on the basis of how well they managed the total cost including located costs As the manager of the Machining Division which ocation method would you prometned in anul 27 Epla The age of Machining soni amount of verhad costs being alocated to the Machining Division ad b ts) my cl Data Table division costs $ 8,000 mort orta Fon 720 21,804 pbly. Allocate the Support departments Building and grounds Personnel General plant administration Cafeteria: operating loss Storeroom Operating departments: Machining Assembly Total for support and operating departments Bas 331 1.161 $ 32,016 spa $ our 35,300 49,000 84,300 5 116,316 All del rates to the neare Print upp Done Number of Number of Employees Requisitions 0 0 0 0 0 Square Metres of Floor Space Manufacturing Occupied Labour Hours 0 0 3,600 10,800 0 5,400 1,000 4,500 3,000 22,500 6,000 33 200 11,000 0 Direct Manufacturing Department Labour Hours Building and grounds 0 Personnel General plant administration 0 Cafeteria operating loss Storeroom 0 Machining 12.000 Assembly 3,000 Total 15,000 Basis used is number of employees 36 0 0 9 0 9 0 45 81 2,000 1,000 180 80.000 21,000 3.000 Print Done Required 1. Using the step-down method, allocate support division costs. Develop overhead rates per direct manufacturing labour-hour for machining and assembly. Allocate the costs of the support divisions in the order given in this problem Use the allocation base for each support division you think is most appropriate 2. Using the direct method, rework requirement 1. 3. Based on the following information about two jobs, determine the total overhead costs for each job by using rates developed in (a) requirement 1 and (b) requirement 2. Direct Manufacturing Labour Hours Machining Assembly Job 88 21 5 Job 89 6 22 4. The company evaluates the performance of the operating division managers on the basis of how well they managed their total costs, including allocated costs As the manager of the Machining Division, which allocation method would you prefer from the results obtained in requirements 1 and 2? Explain Print Done