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This is really an odd situation," said Jim Carter, general manager of Highland Publishing Company. "We get most of the jobs we bid on that require a lot of press time in the Printing Department, yet profits on those jobs are never as high as they ought to be. On the other hand, we lose most of the jobs we bid on that require a lot of time in the Binding Department. I would be inclined to think that the problem is with our overhead rates, but we're already computing separate overhead rates for each department. So what else could be wrong?" Highland Publishing Company is a large organization that offers a variety of printing and binding work. The Printing and Binding departments are supported by three service departments. The costs of these service departments are allocated to other departments in the order listed below (For each service department, use the allocation base that provides the best measure of service provided, as discussed in the chapter.) quare Direct Labor- Hours Feet Total of Space Number of Machine- Department Personnel Custodial Services Maintenance Printing Binding Labor-Hours Occupied Employees Hours 16,800 2,300 8,900 3,300 11,000 30,600 40,700 01,000 20,700 20 50 69 103 166,000 20,000 14,000 305 45,000 75,000 171,300 88,000 547 211,000 95,000 Budgeted overhead costs in each department for the current year are shown below: Personnel Custodial Services Maintenance Printing Binding $ 320,000 65,300 93,100 418,000 162,000 Total budgeted cost $1,058,400