Support Departments Producing Departments Power General Factory Purchasing Pesticide Liquid Fertilizer Overhead $90,000 $314,000 $167,000 S78,900 $107,800 Square feet Machine hours 1,500 1,500 4,200 4,800 1,403 1,345 24,000 8,000 60 Purchase orders 20 40 7 120
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 attached:
The company does not break
Required:
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.)
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