"This is really an odd situation sold 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. The Personnel cost is allocated based on number of employees. The custodial Services cost is allocated based on square feet of space occupled and the Maintenance cost is allocated based on machine-hours. Total Labor Square Feet of Number of Machine Direct Labor Department Hours Space Occupied Employees HOUS Hours Personnel 17.00 12,600 Custodial Services 8,420 3.900 45 Maintenance 14,5ee 10,800 Printing 31,000 40,300 169,000 27,000 Binding 179,9ee 211.000 91, ce 66 10 303 546 74.00 189,00 20,400 83.ece Budgeted overhead costs in each department for the current year are shown below