Jasmine Company manufactures both pesticide and liquid fertilizer, with each product manufac. lured in separate y emartinects Thrt support departments support the production departments: Power, General Factory, and Purchasing. Budgeted data on the five departments are as follows: Producing Departments Support Departments General Factory Overhead Square feet Machine hours Purchase orders Power $90.000 1.500 S314.000 20 1,403 40 Purchasing $167,000 1,500 1,345 7 Pesticide Liquid Fertilizer $78.900 $107.800 4.200 4,800 24.000 8.000 120 60 The company does not break overhead into fixed and variable components. The bases for allocation are power machine hours; general factory square feet; and purchasing purchase orders. Required: 1. Allocate the overhead costs to the producing departments using the direct method. (Take allocation ratios out to four significant digits. Round allocated costs to the nearest dollar.) 2. Using machine hours, compute departmental overhead rates. (Round the overhead rates to the nearest cent.)

Exercise 7.21_ Sequential Method Refer to the data in Exercise 7.20. The company has decided to use the sequential method of allocation instead of the direct method. The support departments are ranked in order of highest cost to lowest cost. Required: 1. Allocate the overhead costs to the producing departments using the sequential method. (Take allocation ratios out to four significant digits. Round allocated costs to the nearest dollar.) 2. Using machine hours, compute departmental overhead rates. (Round the overhead rates to the nearest cent.)