The Oliver Company manufactures products in two departments: Mixing and Packaging. The company was allocating manufacturing overhead using a single plantwide rate of

$2.25

with direct labor hours as the allocation base. The company has refined its allocation system by separating manufacturing overhead costs into two cost

poolslong dashone

for each department. The estimated costs for the Mixing Department,

$461,250,

will be allocated based on direct labor hours, and the estimated direct labor hours for the year are

205,000.

The estimated costs for the Packaging Department,

$170,500,

will be allocated based on machine hours, and the estimated machine hours for the year are

55,000.

In

October,

the company incurred

5,000

direct labor hours in the Mixing Department and

3,000

machine hours in the Packaging Department.

Read the requirements

1.	Compute the predetermined overhead allocation rates. Round to two decimal places.
2.	Determine the total amount of overhead allocated in October.

.

Requirement 1. Compute the predetermined overhead allocation rates. Round to two decimal places.

Begin by selecting the formula to calculate the predetermined overhead (OH) allocation rate. Then enter the amounts to compute the allocation rate for each department.

						Predetermined OH
		/			=	allocation rate

Mixing

/

=

Packaging

/

=

Requirement 2. Determine the total amount of overhead allocated in

October.

Begin by selecting the formula to allocate overhead costs.

						Allocated mfg.
		x			=	overhead costs

Compute the overhead allocated in

October

for each department and the total for both departments.

Mixing
Packaging
Total