Question
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,
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 Power General Factory Purchasing Pesticide Liquid Fertilizer Overhead $90,000 $316,000 $169,000 $78,500 $107,400 Square feet 1,500 1,500 4,200 4,800 Machine hours 1,403 1,345 24,000 8,000 Purchase orders 20 40 120 60
The company does not break overhead into fixed and variable components. The bases for allocation are powermachine hours; general factorysquare feet; and purchasingpurchase 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 cost to lowest cost.
Required: 1. Allocate the overhead costs to the producing departments using the sequential method. Carry out allocation ratios to four decimal places. Use these numbers for subsequent calculations. Round allocated costs to the nearest dollar. If an amount is zero, enter "0".
Allocation ratios: Power General Factory Purchasing Pesticide Liquid Fertilizer Square feet fill in the blank 1 fill in the blank 2 fill in the blank 3 fill in the blank 4 fill in the blank 5 Machine hours fill in the blank 6 fill in the blank 7 fill in the blank 8 fill in the blank 9 fill in the blank 10 Purchase orders fill in the blank 11 fill in the blank 12 fill in the blank 13 fill in the blank 14 fill in the blank 15 Cost allocation: Power General Factory Purchasing Pesticide Liquid Fertilizer Direct costs $fill in the blank 16 $fill in the blank 17 $fill in the blank 18 $fill in the blank 19 $fill in the blank 20 General Factory fill in the blank 21 fill in the blank 22 fill in the blank 23 fill in the blank 24 fill in the blank 25 Purchasing fill in the blank 26 fill in the blank 27 fill in the blank 28 fill in the blank 29 Power fill in the blank 30 fill in the blank 31 fill in the blank 32 Total $fill in the blank 33 $fill in the blank 34 $fill in the blank 35 $fill in the blank 36 $fill in the blank 37 2. Using machine hours, compute departmental overhead rates. (Round the overhead rates to the nearest cent.) Overhead Rates Pesticide $fill in the blank 38 per machine hour Liquid Fertilizer $fill in the blank 39 per machine hour
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