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Tess=false M Direct Method and Overhead Rates Jasmine Company manufactures both shampoo and conditioner, with each product manufactured in separate departments. Three support departments support
Tess=false M Direct Method and Overhead Rates Jasmine Company manufactures both shampoo and conditioner, 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 Power Factory Purchasing Shampoo Conditioner Overhead $90,000 $312,000 $169,000 $78,500 $107,400 3,000 3,000 Square feet 9,600 8,400 1,403 1,345 8,000 Machine hours 24,000 7 40 120 60 20 Purchase orders 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. If required, round your allocation ratios to four decimal places and round allocated costs to the nearest dollar and use the rounded values for the subsequent calculations. Neyt &inprogress=false 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. If required, round your allocation ratios to four decimal places and round allocated costs to the nearest dollar and use the rounded values for the subsequent calculations. Cost assignment: Shampoo Conditioner Direct costs $ $ Power General Factory Purchasing $ $ Total 2. Using machine hours, compute departmental overhead rates. (Round the overhead rates to the nearest cent.) Departmental overhead rates $ per machine hour Shampoo $ per machine hour Conditioner
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