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Check my work Problem 48-6 Step-Down Method versus Direct Method; Predetermined Overhead Rates [LO4-10, LO4- The Sendai Co., Ltd., of Japan has budgeted costs in its various departments as follows for the coming year: Factory Administration Custodial Services Personnel Maintenance Machining-overhead Assembly-overhead Total cost $766,800 275,640 38,300 55, 860 922,200 777,800 The company allocates service department costs to other departments in the order listed below. Squa Total Feet of Direct Number of Labor-Space Labor-Machin Employees Hours Occupied Hours Hours Department 14,200 Factory Administration Custodial Services Personnel Maintenance Machining Assembly 28 12 18 51 40 160 309 8,0002,300 19,400 11,100 52,10019,500 60,000 140,000 101,000 140,000 180,000 40,000 234,000 40,000 Machining and Assembly are operating departments; the other departments are service departments. Factory Administration is allocated based on labor-hours: Custodial Services based on square feet occupied; Personnel based on number of employees; and Maintenance based on machine-hours. Prev 1 of 3 Next >