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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: Overhead Square feet 1.500 Machine hours Support Departments Producing Departments General Liquid Power Factory Purchasing Pesticide Fertilizer $80,000 $314,000 $169,000 $78,000 5107,700 1,500 4,200 1,403 1,345 24,000 8,000 Purchase orders 20 120 60 The company does not break overhead into fived and variable components. The bases for location are power machine hos 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 report decertments are oned in order of highest cost to lowest cost. Required 1. locate the overhead costs to the proowong separtments using the conventat method, Carry out vocation ratos to tour dromul places. Um these numbers for savent calculations. Hond tocated couts ti the nearest doan it an amount is er, enter"0" 40 Allocation ratios Power General Factory Pesticide Purchasing 0.1250 Liquid Fertilizer 0.4 0.1250 Square feet 0 0.35 0.75 0.25 Machine nours 0.1 Purchase orders 0.6 03 Power General Factory Purchasing Pesticide Liquid Fertilizer Square feet 0.1250 07 0.1250 0.35 0.4 Machine hours 0.75 0.25 Purchase orders 0.1 O 0.6 03 Cost allocation Power Pesticide Purchasing 169,000 General Factory 314,000 -314,000 Liquid Fertilizer 107,700 30.000 Direct costs General Factory Purchasing 28,800 39,250 39,250 -208,250 Power Total I 2. Using machine hours, compute departmental overhead rates. (Round the overhead rates to the nearest cent) Overhead Rates Pesticide per machine hour Liquid Ferret per machine hour
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