1. Allocation ratios:
Pesticide | Liquid Fertilizer | |
Square feet | 0.4667 (4200/9000) | 0.5333 (4800/9000) |
Machine hours | 0.75 (24000/32000) | 0.25 (8000/32000) |
Purchase orders | 0.6667 (120/180) | 0.3333 (60/180) |
Cost assignment:
Pesticide | Liquid fertilizer | |
Direct cost | $78,900 | $107,800 |
Power | 67,500 (90,000*0.75) | 22,500 (90,000*0.25) |
General factory | 146,544 (314,000*0.4667) | 167,456 (314,000*0.5333) |
Purchasing | 111,339 (167,000*0.6667) | 55,661 (167,000*0.3333) |
Total | $404,283 | $353,417 |
2.
Departmental overhead rates | ||
Pesticide | $16.85 ($404,283/24,000) | per machine hour |
Liquid fertilizer | $44.18 ($353,417/8,000) | per machine hour |
elook Calcutator Direct Method and Overhead Rates Jasmine Company manufactures both pesticide and lquid fertazer, with...
Direct Method and Overhead Rates Jasmine Company manufactures both pesticide and liquid fertilizer, with each product manufactured in separate departments. Three support departments support the production departments: Power, General Factory, and Purchasing. Budgeted data on the five departments are as follows: Support Departments Producing Departments Power General Factory Purchasing Pesticide Liquid Fertilizer Overhead $80,000 $316,000 $165,000 $78,500 $107,400 Square feet 1,500 — 1,500 4,200 4,800 Machine hours — 1,403 1,345 24,000 8,000 Purchase orders...
Direct Method and Overhead Rates Jasmine Company manufactures both pesticide and liquid fertilizer, with each product manufactured in separate departments. Three support departments support the production departments: Power, General Factory, and Purchasing. Budgeted data on the five departments are as follows: Support Departments Producing Departments Power General Factory Purchasing Pesticide Liquid Fertilizer Overhead $80,000 $314,000 $165,000 $78,800 $107,700 Square feet 1,500 — 1,500 4,200 4,800 Machine hours — 1,403 1,345 24,000 8,000 Purchase orders...
Direct Method and Overhead Rates Jasmine Company manufactures both pesticide and liquid fertilizer, with each product manufactured in separate departments. Three support departments support the production departments: Power, General Factory, and Purchasing. Budgeted data on the five departments are as follows: Support Departments Producing Departments Power General Factory Purchasing Pesticide Liquid Fertilizer Overhead $80,000 $314,000 $165,000 $78,800 $107,700 Square feet 1,500 — 1,500 4,200 4,800 Machine hours — 1,403 1,345 24,000 8,000 Purchase orders...
Direct Method and Overhead Rates Jasmine Company manufactures both pesticide and liquid fertilizer, with each product manufactured in separate departments. Three support departments support the production departments: Power, General Factory, and Purchasing. Budgeted data on the five departments are as follows: Support Departments Producing Departments Power General Factory Purchasing Pesticide Liquid Fertilizer Overhead $80,000 $316,000 $165,000 $78,500 $107,400 Square feet 1,500 — 1,500 4,200 4,800 Machine hours — 1,403 1,345 24,000 8,000 Purchase orders...
Direct Method and Overhead Rates Jasmine Company manufactures both pesticide and liquid fertilizer, with each product manufactured in separate departments. Three support departments support the production departments: Power, General Factory, and Purchasing. Budgeted data on the five departments are as follows: Support Departments Producing Departments Power General Factory Purchasing Pesticide Liquid Fertilizer Overhead $90,000 $314,000 $169,000 $78,500 $107,700 Square feet 1,500 — 1,500 4,200 4,800 Machine hours — 1,403 1,345 24,000 8,000 Purchase orders...
Sequential Method Jasmine Company manufactures both pesticide and liquid fertilizer, with each product manufactured in separate departments. Three support departments support the production departments: Power, General Factory, and Purchasing. Budgeted data on the five departments are as follows: Support Departments Producing Departments Power General Factory Purchasing Pesticide Liquid Fertilizer Overhead $80,000 $312,000 $169,000 $78,800 $107,700 Square feet 1,500 — 1,500 4,200 4,800 Machine hours — 1,403 1,345 24,000 8,000 Purchase orders 20 40...
exercise 7.21 only OBJECTIVE Exercise 7.20 Direct Method and Overhead Rates Jasmine Company manufactures both pesticide and liquid fertilizer, with each product manus tured in separate departments. Three support departments support the production departmen Power, General Factory, and Purchasing. Budgeted data on the five departments are as follows Support Departments Producing Departments Power General Factory Purchasing Pesticide Liquid Fertilizer Overhead S90.000 $314,000 S167,000 $78.900 S 107.800 Square feet 1.500 1.500 4,200 4.800 Machine hours 1.403 1.345 24,000 8.000 Purchase orders...
Direct Method and Overhead RatesJasmine Company manufactures both pesticide and liquid fertilizer, with each product manufactured in separate departments. Three support departments support the production departments: Power, General Factory, and Purchasing. Budgeted data on the five departments are as follows:The company does not break overhead into fixed and variable components. The bases for allocation are power—machine hours; general factory—square feet; and purchasing—purchase orders.Required:1. Allocate the overhead costs to the producing departments using the direct method. (Take allocation ratios out to...
need help with 7.21E. dont understand how to caluclate allocation ratios using sequential method. Exercise 7.20 Direct Method and Overhead Rates Jasmine Company manufactures both pesticide and liquid fertilizer, with each product manufac- tured in separate departments. Three support departments support the production departments: Power, General Factory, and Purchasing. Budgeted data on the five departments are as follows: Support Departments Producing Departments Power General Factory Purchasing Pesticide Liquid Fertilizer Overhead $90,000 $314,000 $167,000 $78,900 $107,800 Square feet 1,500 1,500 4,200...
Belami Company manufactures both shampoo and conditioner, with each product manufactured in separate departments. Three support departments support the production departments: Power, General Factory, and Purchasing. Budgeted data on the five departments are as follows:Support DepartmentsProducing DepartmentsPowerGeneralFactoryPurchasingShampooConditionerOverhead$80,000$316,000$169,000$78,800$107,400Square feet3,000—3,0009,6008,400Machine hours—1,4031,3458,00024,000Purchase orders2040—60120The company does not break overhead into fixed and variable components. The bases for allocation are power—machine hours; general factory—square feet; and purchasing—purchase orders.The company has decided to use the sequential method of allocation instead of the direct method. The support...