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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,
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 foliows: The company does not break overhead into fixed and variabie components. The boses for allocation-are power-machine hours: general factorysquare feet; and purchasing-purchase orders. Required: 1. Alocate the overhead costs to the producing departments using the direct method. If required, round your aliocation ratios to four decimal places and round aliocated costs to the nearest dollar and use the rounded values for the subsequent calculations. Cost assignment: 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 doliar and use the rounded values for the subsequent calculations. Cost assignment: 2. Using machine hours, compute departmental overhead rates. (Round the overhead rates to the nearest cent.)
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