Direct Method and Overhead Rates

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. If required, round your answers to four decimal places.

Allocation ratios:

Pesticide Liquid Fertilizer

Square feet

Machine hours

Purchase orders

Cost assignment: (If required, round to the nearest dollar.)

Pesticide Liquid Fertilizer

Direct costs $ $

Power

General Factory

Purchasing

Total $ $

2. Using machine hours, compute departmental overhead rates. If required, round your answers to the nearest cent.

Departmental overhead rates:

Pesticide $ per machine hour

Liquid Fertilizer $ per machine hour

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: Allocate the overhead costs to the producing departments using the sequential method. Carry out allocation ratios to four decimal places. Use these numbers for subsequent calculations. If an amount is zero, enter "0". Using machine hours, compute departmental overhead rates. If required, round your answers to the nearest cent