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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
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: Direct costs Power General Factory Purchasing Total Pesticide Pesticide Liquid Fertilizer 78,500 60,000 153,400 X 108,517 X Liquid Fertilizer 107,700 20,000 158,600 X 60,843 X 2. Using machine hours, compute departmental overhead rates. (Round the overhead rates to the nearest cent.) 400,417 X $347,143 X Departmental overhead rates 16.53 per machine hour 43.80 per machine hour
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