The Western Mountain Company has prepared department overhead budgets for budgeted-volume levels before allocations as follows:

Support departments:

Building and grounds $18,000

Personnel $612

General plant administration $22,392

Cafeteria: Operating loss $1,788

Storeroom $808 $43,600

Operating departments:

Machining $34,700

Assembly $46,000 $80,700

Total for support and operating departments $124,300

Management has decided that the most appropriate inventory costs are achieved by using individual rates. These rates are developed after support-department costs are allocated to operating departments. Bases for allocation are to be selected from the following:

Direct Square Feet of

Manufacturing Number of Floor Space Manufacturing Number of

Department Labor-Hours Employees Occupied Labor-Hours Requisitions

Building and grounds 0 0 0 0 0

Personnel* 0 0 900 0 0

General plant administration 0 36 7,200 0 0

Cafeteria: operating loss 0 9 1,800 1,000 0

Storeroom 0 9 4,500 3,000 0

Machining 12,000 45 18,000 7,000 3,000

Assembly 3,000 81 117,600 8,500 1,000

Total 15,000 180 150,000 19,500 4,000

*Basis used is number of employees

I need help with formula to set this up. Can anyone help me?

a. Using the step down method, allocate support department costs. Develop overhead rates per direct manufacturing labor hours for machining and assembly. Allocate the costs of the support department in the order given in this problem. Use the allocation base for each support department you think is most appropriate. Begin by selecting the allocating base for each support department Support Department Allocation Base Building and grounds Square feet of floor space occupied Personnel Number of employees General plant administration Manufacturing labor-hours Cafeteria: operating loss Number of employees Storeroom Number of requisitions 6. Using the step down method, allocate support departments costs. Allocate the costs of the support departments in the order given in this problem Bldg and grounds Personnel Gen plant admin Cafeteria loss Storeroom Machining Assembly Cost incurred $18,000 $612 $22,392 $1,788 $808 $34,700 46,000 Allocation of costs: Building ($18,000) $108 Personnel (5504) General admin ($15,000) Cafeteria: loss Storeroom (20,000)