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The Ordon Company manufactures products in two departments: Mixing and Packaging. The company was allocating manufacturing overhead using a single plantwide rate of $2.23 with
The Ordon Company manufactures products in two departments: Mixing and Packaging. The company was allocating manufacturing overhead using a single plantwide rate of $2.23 with direct labor hours as the location base The company has refined its allocation system by separating manufacturing overhead posts into two cost pools one for each department. The estimated costs for the Mixing Department, $475,000, will be allocated based on direct labor hours, and the estimated direct labor hours for the year are 100,000. The estimated costs for the Packaging Department, $140,000, will be allocated based on machine hours, and the estimated machine hours for the year are 40,000. In October, the company incurred 27 000 direct labor hours in the Moring Department and 10.000 machine hours in the Packaging Department Read the requirements re www Begin by selecting the formula to calculate the predetermined overhead (OH) location . Then enter the amounts to compute the allocation rate for each department Predetermined OH location rate Mixing Pedaging The Ordon Company manufactures products in two departments: Mioding and Packaging. The company was allocating manufacturing overhead using a single plantwide rate of $2.23 with direct labor hours as the allocation base The company has refined its allocation system by separating manufacturing overhead costs into two cost pools-one for each department. The estimated costs for the Mixing Department, $475,000, will be allocated based on direct labor hours, and the estimated direct labor hours for the year are 190,000. The estimated costs for the Packaging Department, $140,000, will be allocated based on machine hours, and the estimated machine hours for the year are 40,000. In October, the company incurred 27,000 direct Inbor hours in the Moing Department and 10,000 machine hours in the Packaging Department Read the requirements Requirement 2. Determine the total amount of overhead allocated in October Begin by selecting the formula to allocate overhead costs Allocated mig - overhead costs Compute the overhead located in October for each department and the for both departments Read the requirements. = overhead costs Compute the overhead allocated in October for each department and the total for both departments. Mixing Packaging Total
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