Jasmine Company manufactures both pesticide and liquid fertilizer, 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: Support Department - Producing Departmen Power, Gen. Factory, Purchasing Pesticide,, Liquid Fertilitzer Overhead 90,000 314,000 167,000 78,900 107,800 Sq. Ft 1,500 --- 1,500 4,200 4,800 Machine Hr ---- 1,403 1,345 24,000 8,000 Purch orders 20 40 7 120 60 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. Instructions: 1) Allocate the overhead costs to the producing departments using the direct method. (Take allocation ratios out to four significant digits. Round allocated costs to the nearest dollar.) 2) Using machine hours, compute departmental overhead rates. (Round the overhead rates to the nearest cent.)
Jasmine Company manufactures both pesticide and liquid fertilizer, 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:
Support Department - Producing Departmen
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.
Instructions:
1) Allocate the overhead costs to the producing departments using the direct method. (Take allocation ratios out to four significant digits. Round allocated costs to the nearest dollar.)
2) Using machine hours, compute departmental overhead rates. (Round the overhead rates to the nearest cent.)
Trending now
This is a popular solution!
Step by step
Solved in 6 steps with 6 images
