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O Question 4 > Solomons, Inc. has refined its allocation system by separating manufacturing overhead into two cost pools, one for each department. The estimated
O Question 4 > Solomons, Inc. has refined its allocation system by separating manufacturing overhead into two cost pools, one for each department. The estimated cost for the mixing department, $623,000, will be allocated based on direct labor hours, and the estimated direct labor hours for the year are 210,000. The estimated cost for the packaging department, $310,000, will be allocated based on direct labor hours, and the estimated machine hours for the year are 59,300. In October, the company incurred 17,790 direct labor hours in the mixing department and a total of 13,850 machine hours in the packaging department. (Round your answers to two decimal places when needed and use rounded answers for all future calculations). 1. Compute the predetermined overhead allocation rates. Total estimated Department Total estimated ? quantity of the overhead allocation Predetermined Overhead Allocation Rate (Per Machine overhead cost base Hour) 623000 210000 2.97 Mixing Department Packaging 310000 Department 59300 = 2. Determine the total amount of overhead allocated in October. 5.23 Department Predetermined Overhead Actual Quantity ? of the Allocation = Allocated Manufacturing Allocation Rate Base Used Overhead Cost Mixing 2.97 = Department Packaging 5.23 = Department TOTAL
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