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The OrdorCompany manufactures products in two departments: Mixing and Packaging. The company was allocating manufacturing overhead using a single plantwide rate of $2.30 with
The OrdorCompany manufactures products in two departments: Mixing and Packaging. The company was allocating manufacturing overhead using a single plantwide rate of $2.30 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, $560,500, 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, $97,500, will be allocated based on machine hours, and the estimated machine hours for the year are 25,000. In October, the company incurred 66,000 direct labor hours in the Mixing Department and 6,000 machine hours in the Packaging Department. Read the requirements 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 Mixing Estimated overhead costs Estimated qty of the allocation base = allocation rate costs for the Mixing Department, $560,500, will be allocated bas direct labor hours for the year are 190,000. The estimated costs for the Packaging Departm machine hours, and the estimated machine hours for the year are 25,000. In October, the c the Mixing Department and 6,000 machine hours in the Packaging Department. Requirements 1. Compute the predetermined overhead allocation rates. Round to two decimal places. 2. Determine the total amount of overhead allocated in October. Print Done
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