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The Overman Company manufactures products in two departments: Mixing and Packaging. The company was allocating manufacturing averhead using a single plantwide rate of $2.25 with
The Overman Company manufactures products in two departments: Mixing and Packaging. The company was allocating manufacturing averhead using a single plantwide rate of $2.25 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 stimated direct labor hours for the year are 200,000. The estimated costs for the Packaging Department, $200,750, will be allocated based on machine hours, and the estimated machine hours for the vear are 55,000. In October, the company incumed 7,000 direct labor hours in the Mixing Department and 11,000 machine hours in the Packaging Department. Read the requirements Requirement 1. Compute the predetermined overhead allocation rates. Round to two decimal places Begin by selecting the formula to calculate the predelermined overhead (OH) allocation rate. Then enter the amounts to compute the allocation rate for each department Predetermined OH allocation rale Mixing Packaging Requirement 2. Detemine the total amount of overhead allocated in October. Begin by selecting the formula to allocate overhead costs. Allocated mfg. = overhead costs Compute the overhead allocated in October for each department and the total for both depariments. Mixing Requirements Packaging Total Compute the predetermined overhead allocation rates. Round to two decimal places. 1 2 Determine the total amount of overhead allocated in October Print Done Choose from any list enter any number in the input fields and then continue to the next
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