*PLEASE SEE THE ATTACHED IMAGE

The order and bases for allocating service department costs is given below:

SD1; allocation base is number of employees

SD2; Allocation base is space occupied

SD3; Allocation base is hours of press time.

Assume that PD1 and PD2 both use direct labor hours for computing OH rate.

1. Using the Direct method of allocation, how much OH rate must be assigned to PD1?
2. Using the Step Method of allocation, how much OH rate must be assigned to PD2?
3. Using the Step Method, how much is the cost of SD3 to be allocated to SD2?
4. Using the Step Method, how much is the total OH cost of PD1 after allocation?

The Michigan Company provides the following selected data about its three service and two operating departments: Production Production Service Dept 1 Service Dept 2 Service Dept 3 Dept1 Dept2 Overhead costs 200,000 267,000 180,000 105,000 48,000 Number of 315 210 60 35 140 Employees Square feet of 40,000 100,000 5,000 10,000 20,000 space occupied Hours of press 15,000 30,000 0 0 0 time Direct labor 10,000 20,000 0 0 0 hours Machine hours 50,000 60,000 The order and bases for allocating service department costs is given below: SD1; allocation base is number of employees SD2; Allocation base is space occupied SD3; Allocation base is hours of press time. Assume that PD1 and PD2 both use direct labor hours for computing OH rate. 26. Using the Direct method of allocation, how much OH rate must be assigned to PD1? 27. Using the Step Method of allocation, how much OH rate must be assigned to PD2? 28. Using the Step Method, how much is the cost of SD3 to be allocated to SD2? 29. Using the Step Method, how much is the total OH cost of PD1 after allocation