Question
the orzo company manufactures products in two departments: mixing and packaging. the company was allocating manufacturing overhead using a single plantwide rate of $2.40 with
the orzo company manufactures products in two departments: mixing and packaging. the company was allocating manufacturing overhead using a single plantwide rate of $2.40 with direct labor hours as the allocation base.the company has refined it's allocation system by seperating manufacturing overhead costs into two cost pools- one for each department. the estimated costs for the mixing department, $490,000, will be allocated based on direct labor hours, and the estimated direct labor hours forthe year are 175,000. the estimated costs for the packaging department, $243,750 , will be allocated based on machine hours, and the estimated machine hours for the year are 65,000. in october, the company incurred 45,000 direct labor hours in the mixing department and 9,000 machine hours in the packaging department. requirements: 1. compute the predetermined allocation rates. round to two decimal places. 2. determine the total amount of overhead allocated in october.
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