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CoursHeroTranscribedText: Direzx 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 ve departments are as follows: Support Departments Producing Departments General Liquid Power Factory Purchasing Pesticide Fertilizer Overhead $80,000 $312,000 $165,000 $78,800 $107,400 Square feet 1,500 1,500 4,200 4,800 Machine hours 1,403 1,345 24,000 8,000 > Purchase orders 20 40 7 120 60 The company does not break overhead into xed and variable components. The bases for allocation are powermachine hours; general factorysquare feet; and purchasingpurchase orders. Required: 1. Allocate the overhead costs to the producing departments using the direct method. If required, round your allocation ratios to four decimal places and round allocated costs to the nearest dollar and use the rounded values for the subsequent calculations. Cost assignment: Pesticide Liquid Fertilizer Direct costs Power General Factory Purchasing MUD MUD Total 2. Using machine hours, compute departmental overhead rates. (Round the overhead rates to the nearest cent.) Departmental overhead rates D $[:] Pesticide per machine hour Liquid Fertilizer per machine hour

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