The Southern Wind Company has prepared department overhead budgets for budgeted-volume levels before allocations as follows: (Click the icon to view the department overhead budgets.) Management has decided that the most appropriate inventory costs are achieved by using individual department overhead rates. These rates are developed after support-department costs are allocated to operating departments. Bases for allocation are to be selected from the following: (Click the icon to view the data.) Read the requirements. Requirement 1. Using the step-down method, allocate support-department costs. Develop overhead rates per direct manufacturing labor-hour for machining and assembly. Allocate the costs of the support departments in the order given in this problem. Use the allocation base for each support department you think is most appropriate. Begin by selecting the allocation base for each support department. Support Department Allocation Base Building and grounds Personnel General plant administration Cafeteria: operating loss Storeroom i X i Data Table x elp Data Table Direct Manufacturing Labor-Hours Square Feet of Floor Space Occupied Indirect Manufacturing Labor-Hours Number of Employees for Support departments: Building and grounds Department Number of Requisitions 42,500 0 0 0 0 0 Personnel 1,260 Building and grounds Personnel 0 0 2,000 0 0 General plant administration 16,685 0 35 10,500 0 0 Cafeteria: Operating loss 1,635 General plant administration Cafeteria: operating loss 0 10 5,000 1,000 0 4,020 $ h in Storeroom 66,100 Storeroom 0 5 2,500 3,000 0 Operating departments: Machining Machining 50 $ 12,000 3,000 40,000 190,000 7,000 7,750 3,000 1,000 35,300 51,100 100 Assembly 86,400 Assembly 15,000 200 250,000 18,750 4,000 Total $ 152,500 Total for support and operating departments aBasis used is number of employees Print Done Print Done