The Tail Top 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 located 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 coids 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 Cafeteria operating loss Storeroom Allocation Base Square feet of floor space occupied Number of employees Manufacturing labor-hours Number of employees Number of requisitions Using the step-down method, allocate support department costs. Allocate the costs of the support departments in the order given in this problem. (Round all indirect allocation rates to the nearest cent and all other computations to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs) Support Departments Operating Departments General Cafeteria - X s. These rates are developed a Top Company has prepared department overhead budgets for Budgeted-volume lovers before allocations 25 TONIOWS k the icon to view the deadment quodhood budaole ment has decided tha departments. Bases k the icon to view the requirements ment 1. Using the ste departments in the or selecting the allocati Department and grounds el plant administration: a: operating loss m Data table Support departments: Building and grounds Personnel General plant administration Cafeteria: Operating loss Storeroom Operating departments: Machining Assembly Total for support and operating departments $ 18,000 760 44,765 455 3,600 $ 67,580 $ 35,000 51,100 86,100 $ 153,680 uring labor-hour for machining appropriate en in this problem (Round a Read the requirements. Data table Require support X chining and asa Begin by Suppor Department Direct Manufacturing Labor-Hours Number of Square Feet of Floor Space Indirect Manufacturing Employees Occupied Labor-Hours Number of Requisitions Building Building and grounds 0 0 0 0 Personnel" 0 0 2,000 0 Person General plant administration 0 35 10,500 0 0 Genera Cafeteria: operating loss 0 10 6,000 1,000 0 Cafeter Storeroom 0 5 5,000 3,000 0 Storero Machining 7,000 50 40,000 10,000 3,000 und all indirec Using th 21,000 100 86,500 28,000 1,000 and all d Assembly 28,000 200 150,000 42,000 4,000 Total "Basis used is number of employees Cl Support Departments General Cafeteria Operating Departments Bldg and Grounds Personnel Plant Admin. Operating Loss Storeroom Machining Assembly 150000 Costs incurred Allocation of costs Building and grounds Personnel General plant administration Cafeteria Storeroom Total budgeted costs of operating departments