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Direct Method and Overhead Rates Jasmine Company manufactures both pesticide and liquid fertilizer, with each...

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Accounting

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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 General Liquid Power Factory Purchasing Pesticide Fertilizer Overhead Square feet Machine hours Purchase orders $316,000 $165,000 1,500 1,345 $78,800 4,200 24,000 120 $107,400 4,800 8,000 60 $90,000 1,500 1,403 20 40 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

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