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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.
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 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
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