Please help!

\"This is really an odd situation,\" said Jim Carter, general manager of Highland Publishing Company. \"We get most of thejobs 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. 50 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 occupied and the Maintenance cost is allocated based on machine-hours. Square Feet Total Labor- of Space Number of Machine- Direct Labor- Department Hours Occupied Employees Hours Hours Personnel 16,000 12,200 26 Custodial Services 8 , 400 3, 300 41 Maintenance 14,700 10,800 62 Printing 30,900 40,200 104 160,000 18,000 Binding 102,000 20,600 304 48,000 73,000 172,000 87,100 537 208,000 91,000 Budgeted overhead costs in each department for the current year are shown below: Personnel 5 320, 000 Custodial Services 65,600 Maintenance 93 , 400 Printing 416, 000 Binding 161 , 000 Total budgeted cost $ 1 , 056 , 000 Because of its simplicity, the company has always used the direct method to allocate service department costs to the two operating departments. Because of its simplicity, the company has always used the direct method to allocate service department costs to the two operating departments. Required: 1. Using the step-down method, allocate the service department costs to the consuming departments. Then compute predetermined overhead rates in the two operating departments. Use machine-hours as the allocation base in the Printing Department and direct labor-hours as the allocation base in the Binding Department. 2. Repeat (1) above, this time using the direct method. Again compute predetermined overhead rates in the Printing and Binding departments. 3. Assume that during the current year the company bids on ajob that requires machine and labor time as follows: Direct Machine-Hours Labor-Hours Printing Department 2 , 100 1 , 400 Binding Department 400 13 , 600 Total hours 2,500 15,000 a. Determine the amount of overhead cost that would be assigned to thejob if the company used the overhead rates developed in (1) above. Then determine the amount of overhead cost that would be assigned to the job if the company used the overhead rates developed in (2) above