The Norther Plain Company has prepared department overhead budgets for budgeted volume levels before alocations as follows (Click the icon to view the department overhead budgets.) Management has decided that the most approprierwentory costs are achieved by using individual department overhead rates. These rates are developed after wapport department costs are allocated to operating departments Bases for allocation are to be selected from the following: Click the icon to view the data) i Data Table $ 22,500 2,394 Support departments: Building and grounds Personnel General plant administration Cafeteria: Operating loss Storeroom Operating departments: Machining Assembly 20,358 3,650 504 $ 49,406 $ 33,000 52,400 85,400 Total for support and operating departments $ 134,806 Print Done X Data Table Direct Manufacturing Labor-Hours Number of Employees Square Feet of Floor Space Occupied Manufacturing Labor-Hours Number of Requisitions Department Building and grounds Personnel General plant administration Cafeteria: operating loss Storeroom Machining ooooo 1,400 12 600 2,800 39,200 28,000 166,000 250,000 1,000 3,000 8.000 12,300 9,000 9,000 Assembly 18,000 24,300 Total "Basis used is number of employees und nent Print Done A 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 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. Print Done assory. w ww.sopProper ICH WWE UUCI givell ink 0 Information an Direct Manufacturing Labor-Hours Machining Assembly ng ents Job 88 Job 89 Print Done other computations to the nearest whole dollar. Use parentheses or a minus sign wher Read the regur Using the step-down method alocale support department costs Aloxate the costs of the suport departments in the order given in this problem (Round all indirect allocationales to the nearest and at the computations to the r est whole dolu Une pentheses orams in when decreasg departments by allocating costs) Support Departments Operating Departments Read the requirements Bldg and Grounds Personnel General Plant Admin Cafeteria Operating Loss Storeroom Machining Assembly Costs incurred Allocation of costs Building and grounds Personnel General plant administration Cafeteria Storeroom Total budgeted costs of operating departments Enter any number in the edit fields and then click Check