Use the following information for to answer the next 5 questions.

The cost driver used for the two Support Departments are as follows:

Personnel costs are allocated based on the number of employees, and Maintenance costs are allocated based on machine hours.

	Support Departments		Line Departments
	Personnel	Maintenance	Fabrication	Assembly
Budgeted overhead	$40,000	$72,000	$140,000	$160,000
Machine hours	-	-	12,000	8,000
Number of employees	4	10	15	25

1. Using the Direct Method, the percentage of total Personnel costs allocated to Fabrication would be:

Group of answer choices

37.5%

33.33%

30.61%

2. Using the Step-down Method, (and assuming the company allocates Personnel costs first) the total amount of costs allocated from Maintenance to Assembly would be:

Group of answer choices

$40,000.00

$45,000,00

$50,000.00

$32,000.00