The ortman 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 allocation base.

The company has refined its allocation system by separating manufacturing overhead costs into two cost pools--one for each department. The estimated cost for the mixing department is $661,500, will be allocated based on direct labor hours and the SMA directly for hours for the year are 210,000. The estimated costs for the Packing Department, $160,000, will be allocated based on machine hours in the machine hours for the year or 40,000. in October the company incurred 60,000 direct labor hours in the mixing department and 6000 machine hours in the packaging department.

Requirements:

Compute the predetermined overhead allocation rates. Round two decimal places.

determine the total amount of overhead allocated in October

Similar to Question Help The Orman Company manufactures products in two departments: Mixing and Packaging. The company was along manufacturing overhead using a single planwide rate of $2.23 with direct labor hours as the action The company has refined i ocation system bywing manufacturing overhead costs low cost one for each department. The estimated costs for the Ming Department 01,000, wil be allocated based on direct obor hours and the estimated direct labor hours for the your are 210,000. The estimated costs for the Packaging Department. $160,000, wil be allocated based on machine hours, and the estimated machine hours for the year 20,000. In Octoberthe company incurred 60.000 direct labor hours in the Mang Dapartinant and 6,000 machine hours in the Package Department Read the requirements Requirements Compute the predetermined overhead allocation rates. Round to two decimal places. Determine the total amount of overhead allocated in October