Problem 4B-6 Step-Down Method versus Direct Method; Predetermined Overhead Rates [LO4-10, LO4-11 The Sendai Co, Ltd, of Japan has budgeted costs in its various departments as follows for the coming year: 10 points eBook Print References Factory Administration Custodial Services Personnel Maintenance Machining-overhead Assembly-overhead Total cost 605,500 229,926 65,789 324,785 1,697,40 542,200 $3,465,500 The company allocates service department costs to other departments in the order listed below Square Total Feet of Direct Number of Labor- Space Labor- Machine- Department Enployees Hours Occupled Eours Bours Factory Administration Custodial Services Personnel Maintenance Machining Assenbly 27 5,600 9.9006,900 21 60 0 100,000 140,00099,000 280,000 19,6007,700- 53,000 10,500- 120 250,000 40,000 236,000 80,000 20 432,500 210,700335,006 360,000 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 Required: 1. Allocate service department costs to consuming departments by the step-down method. Then compute predetermined overhead rates in the oneratinn denartmente usinn marhine-hnure as the allnratinn hase in Marhininn and direet lahnr.hnsure as the allnratinn Prev 1 of 3E Next >