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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 follows: Support Departments Producing Departments General Liquid Power Factory Purchasing Pesticide Fertilizer Overhead $90,000 $314,000 $167,000 $78,900 $107,800 Square feet 1,500 4,200 4,800 Machine hours - 1,403 1,345 24,000 8,000 Purchase orders 20 40 120 60 The bases for allocation are power-machine hours, general factorysquare feet; and purchasing-purchase orders. a. Ordering the support departments by largest amount of direct overhead, what are the allocated overhead costs to the producing departments using the sequential method. (Round all allocation ratios to four decimal places and allocation amounts to whole b. Using machine hours, compute departmental overhead rates. (Round the overhead rates to the nearest cent)
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