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Indirect Cost Allocation: Direct MethodSprint Manufacturing Company has two production departments, Melting and Molding. Directgeneral plant management and plant security costs benefit both production departments. Sprintallocates general plant management costs on the basis of the number of production employee sand plant security costs on the basis of space occupied by the production departments. In November, the following overhead costs were recorded:Melting Department direct overhead Molding Department direct overhead General plant management Plant security $180,000300,000100,00030,000 Other pertinent data follow:Melting Molding Number of employees 2560 Space occupied (square feet) 10,000 40,000 Machine hours10,000 2,000 Direct labor hours 4,000 20,000 (a) Prepare a schedule allocating general plant management costs and plant security costs to the Melting and Molding Departments.Department Total$Answer Melting$Answer 100000 Molding$Answer 0 0 General Plant Management $Answer $Answer 30000 Plant security $Answer 0 0 (b) Determine the total departmental overhead costs for the Melting and Molding Departments.Melting $Answer0 Molding $Answer0 (c) Assuming the Melting Department uses machine hours and the Molding Department usesdirect labor hours to apply overhead to production, calculate the overhead rate for eachproduction department. (Round your answers to two decimal places.)Melting $Answer0 Molding $Answer0
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