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 Operating Departments Support Departments General Cafeteria Plant Operating Personnel Admin. LOSS Bldg and Grounds Storeroom Machining Assembly Costs incurred Allocation of costs: Building and grounds Personnel General plant administration Cafeteria Storeroom Total budgeted costs of operating departments s. The th i Data Table Support departments: Building and grounds $ 5,600 Personnel 920 21,000 DU General plant administration Cafeteria: Operating loss 1,030 1,070 $ 29,620 Storeroom Operating departments: Machining $ 34,000 48,000 Assembly 82,000 $ 111,620 Total for support and operating depart nts Print Done part Data Table Direct Manufacturing Labor-Hours Number of Employees 0 Number of Requisitions Indirect Manufacturing Labor-Hours 0 0 0 0 0 0 0 0 40 0 Square Feet of Floor Space Occupied 0 6,000 4,000 1,000 7,500 24,000 27,500 70,000 Department Building and grounds Personnel General plant administration Cafeteria: operating loss Storeroom Machining Assembly 0 0 5 2,000 0 0 5 0 60 5,000 15,000 3,000 7,000 12,000 2,000 1,000 90 20,000 200 24,000 3,000 Total "Basis used is number of employees Print Done 1 Requirements 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. Direct Manufacturing Labor-Hours Machining Assembly Job 88 21 1 Job 89 4 14 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 allocation method would you prefer from the results obtained in requirements 1 and 2? Explain. e Print Done S