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Direct Method and Overtoad Rates Casmine Company manufactures bath pesticide and liquid fertilizer, with each product manufactured in separate department. The support department support the
Direct Method and Overtoad Rates Casmine Company manufactures bath pesticide and liquid fertilizer, with each product manufactured in separate department. The support department support the production dapartments Power, General Factory and Purchasing. Budgeted data on the va dasartments are as falons Support Departments Producing Departments General Factory Liquid Fertilizer Power Purchasing Pesticide $314,000 Overhead Square feet $80,000 1,500 $107,400 4,900 $169,000 1.500 1,345 7 $78,609 4.200 2 4.con 120 Machine hours 1,403 8,000 Purchase orders 20 60 The company does not hraak overhead into read and variable components. The bases for allocation are power-machine hours: general factory square feet; and purchasing-purchase orders. Required: 1. A locate the averhead costs to the producing departments using the direct method. If required, round your allocation ratiosta Faur dasmal places and round alocated costs to the res est coa and use the roundod va ves for the subsequent culations Cost assignment: Pesticide Liquid Fertilizer Direct costs Power General Factory Purchasing Total 2. Using machine hours, compute departmental overhead rates Round the overhead rates to the nearest cent.) Pesticide Departmental overhead rates per machine hour bernanine hour Liquid Fertilizer
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