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:

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.
Required:
1. Allocate the overhead costs to the producing departments using the direct method.
2. Using machine hours, compute departmental overhead rates.

Transcribed Image Text:

Support Departments General Factory S314,000 Producing Departments Pesticide iquid Fertilizer Power Purchasing $167,000 1,500 1,345 S78,900 4,200 24,000 120 $90,000 1,500 Overhead Square feet Machine hours Purchase orders $107,800 4,800 8,000 60 1,403 40 20