Question
the orzo company manufactures products in two departments: mixing and packaging.the company was allocating manufacturing overhead using a single plantwide rate of $2.35 with direct
the orzo company manufactures products in two departments: mixing and packaging.the company was allocating manufacturing overhead using a single plantwide rate of $2.35 with direct labor hours as the allocation base. the company has refined its allocation system by seperating manufthe estimated direct laboacturing overhead costs into two pools-one for each department. the estimated costs for the mixing department , $651,000 , will be allocated based on direct labor hours, and the estimated direct labor hours for the year are 210,000 . the estimated costs for the packaging department, $247,000, will be allocated based on machine hours, and the estimated machine hours for the year are 65,000. in october, the company incurred 10,000 direct labor hours in the mixing department and 11,000 machine hours in the packaging department. determine the total amount of overhead allocated in october. begin by selecting the formula to allocate overhead costs.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started