The Ortman Company manufactures products in two departments: Mixing and Packaging. The company was allocating manufacturing overhead using a single plantwide rate of $$2\mathrm{.}40$ 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, $$450,000,$ will be allocated based on direct labor hours, and the estimated direct labor hours for the year are $180,000.$ The estimated costs for the Packaging Department, $$117,250,$ will be allocated based on machine hours, and the estimated machine hours for the year are $35,000.$ In October, the company incurred $42,000$ direct labor hours in the Mixing Department and $11,000$ machine hours in the Packaging Department.

Requirement $2.$ Determine the total amount of overhead allocated in October.

Begin by selecting the formula to allocate overhead costs.

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$\backslash$table$[[$Allocated mfg$.]]$

Compute the overhead allocated in October for each department and the total for both departments.

Mixing

Packaging

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