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d Support Departments eet General Power Factory Purchasing Shampoo Conditioner $90,000 $314,000 $165,000 $78,500 $107,400 3,000 9,600 8,400 hours 8,000 24,000 e orders 60 pany does not break overhead into fixed and variable components. The bases for allocation are power-machine hours; general factory-square feet; and purchasing-purchase orders. d: 20 1,403 40 Producing Departments 3,000 1,345 7 120 ce the overhead costs to the producing departments using the direct method. If required, round your allocation ratios to four decimal places and round allocated costs to the nearest dollar and use the

d Support Departments eet General Power Factory Purchasing Shampoo Conditioner $90,000 $314,000 $165,000 $78,500 $107,400 3,000 9,600 8,400 hours 8,000 24,000 e orders 60 pany does not break overhead into fixed and variable components. The bases for allocation are power-machine hours; general factory-square feet; and purchasing-purchase orders. d: 20 1,403 40 Producing Departments 3,000 1,345 7 120 ce the overhead costs to the producing departments using the direct method. If required, round your allocation ratios to four decimal places and round allocated costs to the nearest dollar and use the

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Jasmine Company manufactures both shampoo and conditioner, with each product manufactured in separate departments. Three support departments support the production departments: Power, General Factory, and Purchasing. Budgeted data on the five departments are as follows: Overhead Square feet Machine hours Purchase orders Direct costs Power Power General Factory Purchasing Support Departments $90,000 Shampoo Conditioner 3,000 20 General Factory Purchasing Shampoo $165,000 $78,500 9,600 8,000 60 $314,000 Shampoo 1,403 40 3,000 1,345 7 The company does not break overhead into fixed and variable components. The bases for allocation are power-machine hours; general factory-square feet; and purchasing-purchase orders. Conditioner Producing Departments Required: 1. Allocate the overhead costs to the producing departments using the direct method. If required, round your allocation ratios to four decimal places and round allocated costs to the nearest dollar and use the rounded values for the subsequent calculations. Cost assignment: Conditioner $107,400 8,400 24,000 per machine hour per machine hour 120 Total 2. Using machine hours, compute departmental overhead rates. (Round the overhead rates to the nearest cent.) Departmental overhead rates
Transcribed Image Text:Jasmine Company manufactures both shampoo and conditioner, with each product manufactured in separate departments. Three support departments support the production departments: Power, General Factory, and Purchasing. Budgeted data on the five departments are as follows: Overhead Square feet Machine hours Purchase orders Direct costs Power Power General Factory Purchasing Support Departments $90,000 Shampoo Conditioner 3,000 20 General Factory Purchasing Shampoo $165,000 $78,500 9,600 8,000 60 $314,000 Shampoo 1,403 40 3,000 1,345 7 The company does not break overhead into fixed and variable components. The bases for allocation are power-machine hours; general factory-square feet; and purchasing-purchase orders. Conditioner Producing Departments Required: 1. Allocate the overhead costs to the producing departments using the direct method. If required, round your allocation ratios to four decimal places and round allocated costs to the nearest dollar and use the rounded values for the subsequent calculations. Cost assignment: Conditioner $107,400 8,400 24,000 per machine hour per machine hour 120 Total 2. Using machine hours, compute departmental overhead rates. (Round the overhead rates to the nearest cent.) Departmental overhead rates
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