roblem 48-6 Step-Down Method versus Direct Method; Predetermined Overhead Rates L04-10, LO4- d costs in its various departments as follows for the coming year: Factory Administration Custodial Services Personnel Maintenance Machining-overhead Assembly-overhead Total cost $1,063,750 125,540 39,520 155,140 969,100 875,450 $3,228,500 The company allocates service department costs to other departments in the order listed below. square Total Feet of Direct Number of Employees Hours occupied Houre Hours bor- Space Labor- Machine- Departnent Factory Administration Custodial Services Personnel Maintenance Machining Assembly 11,700 27 11 14 13,400 2,900- 17,400 12,600- 44,700 16,800 100 150,000 52,500 46,000 232,000 50 200,000 17,500 229,000 29,000 360 4 25,500 114,000 275,000 263,000 Machining and Assembly are operating departments; the other departments are service departments. Factory allocated based on labor-hours; Custodial Services besed on square feet occupled, Personnel Based on number of employees; and Maintenance based on machine-hours Prev 1of3I Next>