Eclipse, Inc. has three support departments: Cafeteria, Janitorial, and Administration. It also has two line departments: Machining and Assembly. The following data pertain to operations for the most recent year.

Required:
a. Allocate the support department costs to the line departments using the direct method.
b. Allocate the support department costs to the line departments using the step down method. Rank support departments by size to determine the order of the allocations.
c. Continue with your answer to part (b) above. Suppose the Machining Department expects to incur 10,000 machine hours for the month and the Assembly Department expects to incur 25,000 labor hours for the month. Determine the overhead rate per machine hour in the Machining Department and the overhead rate per labor hour in the Assembly Department.

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Cafeteia Janitorial Administration Machining Assembly S360.000 Initial cost in pool $100,000 60,000 S450,000 %560.000 Services providad to ไม่ Cafeteria Janitorial 20% Administration MachiningAssembly Services Cafeteria provided Janitorial 20% 15% Administration 1090 30% 45% 20% 30% 30% 00% 10% 10%