Question
eBook Show Me How Question Content Area Direct Method and Overhead Rates Jasmine Company manufactures both shampoo and conditioner, with each product manufactured in separate
eBook Show Me How Question Content Area 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 Purchasing Shampoo Conditioner Overhead $80,000 $316,000 $169,000 $78,500 $107,400 Square feet 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 variable components. The bases for allocation are powermachine hours; general factorysquare feet; and purchasingpurchase 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: Shampoo Conditioner Direct costs $fill in the blank 1 78,500 $fill in the blank 2 107,400 Power fill in the blank 3 fill in the blank 4 General Factory fill in the blank 5 fill in the blank 6 Purchasing fill in the blank 7 56,328 fill in the blank 8 112,672 Total $fill in the blank 9 $fill in the blank 10 2. Using machine hours, compute departmental overhead rates. (Round the overhead rates to the nearest cent.) Departmental overhead rates Shampoo $fill in the blank 11 per machine hour Conditioner $fill in the blank 12 per machine hour
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