Sequential Method 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 $80,000 $316,000 $169,000 $78,500 5107,400 Square 1.500 feet 1,500 4,200 4.800 Machine hours 1,403 1,345 24,000 3,000 Purchase 20 40 orders 120 60 The company does not break overhead into fixed and variable components. The bases for location are power-machine hours, general factory-square feet and purchasing-purchase orders, 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 coat to lowest coat Required: 1. Alocate the overhead costs to the producing department using the sequential method carry out alocation ratios to four secimal places. Use these numbers for subsequent calculation Round allocated costs to the nearest dollar. If an amount is zero, entero Allocation ratios: Liquid Power Factory Purchasing Pesticide Fertilizer Square feet 0.125 0.35 Machine hours General 0.125 0 0.41 0 0 0.75 0.25 Purchase orders 0.1 0 ol 0.6 0.3 Power General Factory 0 Purchasing Pesticide Liquid Fertilizer 0.4 0.125 0.125 Square feet Machine hours Purchase orders 01 0.35 0.75 0.25 0.1 0 0 0.6 0.3 Cost allocation: Power Purchasing Pesticide General Factory 314,0 Liquid Fertilizer 80,00 165,0 78,50 107.4 Direct costs General Factory 39,25 -314,4 39,25 x 109,9 125,6 Purchasing 20,45 -204, 122,5 61,27 Power - 139, 34,92 Total 104,7 X 415,7 0 O 329,2 2. Using machine hours, compute departmental overhead Res. (Round the overhead rates to the nearest cent.) Overhead Rates 17.32 per machine Pesticide hour Liquid 41.15 per machine Ferter hour