Direct Method and Overhead Rates Jasmine 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 departments are as follows: Support Departments Producing Departments Power General Factory Overhead Square feet $80,000 $312,000 Purchasing $169,000 Shampoo Conditioner $78,800 $107,400 3,000 3,000 9,600 8,400 Machine hours 1,403 1,345 8,000 24,000 Purchase orders 20 40 7 60 120 The company does not break overhead into fixed and variabile 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 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 Shampoo 78,800 Conditioner 107,400 Power 158,800 x 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: Shampoo Conditioner Direct costs 78,800 107,400 Power 158,800 x General Factory Purchasing 312,000 X 312,000 x Total 2. Using machine hours, compute departmental overhead rates. (Round the overhead rates to the nearest cent.) Shampoo Conditioner Departmental overhead rates per machine hour per machine hour Ow My Wo 1. Allocation Allocation ratio x budgeted support service costs 2. Overhead rate is computed by adding the allocated service costs to the overhead costs that are directly traceable to the producing department and dividing this total by some measure of activity, such as direct labor hours or machine hours