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Direct Method and Dverhead Rates lasmine Company manufactures both shampoo and conditioner, with each product manufactured in separate departments. Three support departments support the production
Direct Method and Dverhead Rates lasmine 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 clepartments are as follows: Support Departments Producing Departments General Power Factory Purchasing Shampoo Conditioner Overhead 590,000 $312.000 $165.000 $78,300 S107,700 5ouare feet 3,000 3,000 9,600 8,400 Machine Hours 1,103 1,345 8,000 24,000 Purchase orders 20 40 7 60 120 The company does not break overhead inta fixed and vanable components. The bases for allocation are power machine hours; general factory square feet; and purchasing purchase anders. 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, Cusl assignments Shampoo Conditioner Direct costs 5 Power General lectory Purchasing Tulal 2. Using machine hours, compute departmental overhead rates, (Round the overhead rates to the nearest cent.) (.) Departmental overhead rales Shampoo per machine hour Curitiurier per machine hout
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