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Jasmine Company manufactures both pesticide and liquid fertileer, with each product manufactured in separate departments. Three support departments support the production departments: Power General
Jasmine Company manufactures both pesticide and liquid fertileer, 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 followe Support Departments Preducing Departments General Liquid Overhead Power $50,000 Factory $314,000 Purchasing Pesticide Fertilizer $165,000 $78,500 $107,700 Square feet 1,500 3,500 4,200 4,800 Machine hours 1,403 1,345 24,000 8,000 Purchase orders 20 40 170 50 The company does not break overhead in fived and variable components. The bases for allocation are power-machine hours; general factory-square fest; and purchasing-purchase orders. The company has decided to use the sequential method of allocation instead of the direct method. The suaport departments are rarked in order of highest cost to lowest cost Required 1. Allocate the overhead costs to the producing departments using the sequential method. Carry out ellacation ratios to four decimal places Use these numbers for subsequent calculations. Round allocated costs to the nearest dollar If an amount is " Allocation ratio: Square feet Machine hours Purchase orders Power General Factory Purchasing Pesticide Liquid Fertilizer Square feet Machine hours Cost allocation: Direct costs Galactory Purchasing Power Tal 00000000* Purchasing Pesticide Liquid Fertilizer 1000 General Factory General Factory Purchasing Pesticide Liquid Fertilizer 1000 2. Using machine tours, compute departmental overfeed rates. (Round the overhead rutes to the nearest cent.) Periode Liquid Overhead Rates per machine hour per machine hour
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