Requirea:

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.

Repeat $(1)$ above, this time using the direct method. Again compute predetermined overhead rates in the Printing and Binding departments.

Assume during the current year the company bids on a job requiring machine and labor time as follows:

$\backslash$table$[[,,$Direct Labor$-],[$Printing Department,Machine$-$Hours,Hours$],[$Binding Department,$2,100,1,500],[$Total hours,$400,13,100],[,2,500,14,600]]$

a$.$ Calculate the overhead cost assigned to the job if the company used the overhead rates developed in $(1)$ above. Then calculate the overhead cost assigned to the job if the company used the overhead rates developed in $(2)$ above.

Complete this question by entering your answers in the tabs below.

$\backslash$table$[[$Required $1,$Req$$yed $2,$Required $3A$