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$--],[,$Machine$-$Hours,Hours$],[$Printing Department,$2,100,1,000],[$Binding Department,$700,13,900],[$Total hours,$2,800,14,900]]$

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.

Required $2$

Rejuired $3A$

Calculate the overhead cost assigned to the job if the company used the overhead rates developed in requirement $1$ above.

Then calculate the overhead cost assigned to the job if the company used the overhead rates developed in requirement $2.$

Note: Round your intermediate calculations to $2$ decimal places and final answers to the nearest whole dollar amount. Please provide all equations used to find the answer, for example: $92407\mathrm{.}576*10,800/71,800=13,900$ which is the custodial service cost for maintenace!

$\backslash$table$[[,\backslash$table$[[$Total Overhead$],[$Cost$]]],[$Step$-$down method,$],[$Direct method,$]]$

Highland Publishing Company is a large organization offering 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.

$\backslash$table$[[$Department$,\backslash$table$[[$Total Labor$-],[$Hours$]],\backslash$table$[[$Square Feet of$],[$Space Occupied$]],\backslash$table$[[$Number of$],[$Employees$]],\backslash$table$[[$Machine$-],[$Hours$]],\backslash$table$[[$Direct Labor$],[$Hours$]]],[$Personnel$,16,300,12,400,21,,],[$Custodial Services,$8,800,3,900,46,,],[$Maintenance$,14,300,10,800,68,,],[$Printing$,30,300,40,300,105,166,000,18,000],[$Binding$,108,000,20,700,309,41,000,74,000],[177,700,88,100,549,207,000,92,000]]$

Budgeted overhead costs in each department for the current year are shown below:

$\backslash$table$[[$Personnel$,$$$310,000$