Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

the ortman company manufactures products in two departments. micing and packaging. the company was allocating manufacturing overhead using a single plantwide rate of $2.23 with

the ortman company manufactures products in two departments. micing 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 costs pools-one for each department. the estimated costs for the mixing department, $441,000, will be allocated based on dirwct labor hours, and the estimated direct labor hours for the year are 180,000. the estimated costs for the packaging department, $120,750, will be allocated based on machine hours, and the estimated machine hours for the year are 35,000. in october the company incurred 23,000 direct labor hours in the mixing department and 13,000 machine hours in the packaging department
image text in transcribed
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 Moing Packaging Requirement 2. Determine the total amount of overhead allocated in October Begin by selecting the formula to allocate overhead costs Alocated.mfg overhead oosts Compute the overhead allocated in October for each department and the total for both departments Modng Packagng Total

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions