"This is really an odd situation," said Jim Carter, general manager of Highland Publishing Company. "We get most of the jobs we bid on that require a lot of press time in the Printing Department, yet profits on those jobs are never as high as they ought to be. On the other hand, we lose most of the jobs we bid on that require a lot of time in the Binding Department. I would be inclined to think that the problem is with our overhead rates, but we're already computing separate overhead rates for each department. So what else could be wiong? Highland Publishing Company is a large organization that offers 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 occupled and the Maintenance cost is allocated based on machine-hours Budgeted overhead costs in each department for the current year are shown below: Because of its simpliciyy, the company has always used the direct method to allocate service department costs to the two operating departments. Required: 1. Using the step-down method, allocate the service department costs to the consuming departments Then compute predetermined overheod rates in the two operoting departments. Use machinc hours as the allocation base in the Printing Department and direct labor-hours as the allocation base in the Binding Department. 2. Repeat (t) above, this time using the direct method. Agoin compute predetemined overhead rates in the Printing and Binding departments. 3. Assume that during the current year the company bids on ajob that requires mochine and labor time as follows a. Determine the amount of overhead cost that would be assigned to the job of the company used the overhead rates developed in (i) above. Then determine the amount of overhead cost that would be 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. pveibead iates in the two coerating depertments. Us machine-hours as the allocation buse in the printing bopartinent and direct babour Determine the amount of overhead cost that would be assigned to the job if the company used the overhead rates developed in (1 bove. Then determine the amount of overhead cost that would be assigned to the job if the company used the overhead rates leveloped in (2) above. Complete this question by entering your answers in the tabs below. Using the step-down method, allocate the service department costs to the consuming dopartments. Then compute predetermined overhead rates in the two operating departments. Use machine-hours as the allocation base in the printing Department and direct laborhours as the allocation base in the Binding Department. (Please enter allocations from a department as negative and allocations to a department as posttve. The Aine should add across to zero. Do not round intermediate calcufabons. Round Predetermined overlead rate" to 2 dedimal places and rest of the answers to the nearest whole dolaramount.) Determine the amount of overhead cost that would be assigned to the job if the company used the overhead rates developed in (1) bove. Then determine the amount of overhead cost that would be 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. Repeat requirement 1 above, this time using the direct method; Again compute predetermined overhead rates In the Printing and Blinding departments. (Ploase enter allocations from a department as negativo and allocations to a department as poaltive. The line should add across to zero. Do not round intermediate calculations. Round "Predetermined overhead rate" to 2 docimal places and rest of the answers to the nearest whole dollar amount.) Determine the amount of overhead cost that would be assigned to the job if the company used the overhead rates developed in (1) bove. Then determine the amount of overhead cost that would be 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. Determine the amount of overhead cost that would be assigned to the job if the company usqd the overhead rates developed in requirement 1 above. Then determine the amount of overhead cost that would be assigned to the fob if the company used the overhead rates developed in requirement 2. \{Round your intermediate calcakations to 2 decimat places and final antiwers to the nearest whole doltar amount.)