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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 1,500 4,200 4,800 Machine hours 1,403 1,345 24,000 8,000 Purchase orders 20 40 7 120 60 The bases for allocation are power-machine hours; general factory-square feet; and purchasing-purchase orders. a. Allocate the overhead costs to the producing departments using the reciprocal method in Excel. (Round allocation ratios to four decimal places.) Allocated OH to: Pesticide Fertilizer $ $ b. Using machine hours, compute departmental overhead rates. (Round the overhead rates to the nearest cent). Pesticide OH Rate (per MachHr): Fertilizer $ $
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