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 Support departments: $30,000 1,350 77,136 1,049 Building and grounds Personnel General plant administration Cafeteria: Operating loss Storeroom 4,532 s 114,067 Operating departments: Machining $ 33,000 48,000 81,000 Assembly $195,067 Total for support and operating departments Direct Square Feet of Manufacturing Number of Labor-Hours Requisitions Manufacturing Number of Floor Space Occupied Department Building and grounds Personnel* General plant administration Cafeteria: operating loss Storeroom Machining Assembly Total Basis used is number of employees Labor-Hours Employees 1,800 3,600 4,500 7,200 31,500 151,400 200,000 36 1,000 2,000 11,000 46,000 60,000 3,000 2,000 5,000 8,000 32,000 40,000 45 81 180 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 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. 4. The company evaluates the performance of the operating department managers on the basis of how well they managed their total costs, including allocated costs. As the manager of the Machining Department, which allo efer from the results obtained in requirements cation method would you pr 1 and 2? Explain. Direct Manufacturing Labor-Hours Machining Assembly Job 88 18 Job 89 Requirement 1. Using the step-down method, allocate support-department costs. Develop overhead rates per direct manufacturing laborhour 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 Building and grounds Personnel General plant administration Allocation Base Begin by selecting the allocation base for each support department. Support Department Building and grounds Personnel General plant administration Cafeteria: operating loss Storeroom Allocation Base