Everything is correct asides from the Cost Allocation of the Direct Costs of Pesticide and...
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Everything is correct asides from the Cost Allocation of the Direct Costs of Pesticide and the Total for the Cost Allocation of Pesticide as a result. For Number 2, the Pesticide departmental overhead rate is also wrong. Please provide me with only correct and organized answers. Thank you in advance.
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 General Factory Liquid Fertilizer Power Purchasing Pesticide Overhead $90,000 $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 20 40 120 60 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. The company has decided to use the sequential method of allocation instead of the direct method. The support departments are ranked in order of highest cost to lowest cost. Required: 1. Allocate the overhead costs to the producing departments using the sequential method. Carry out allocation ratios to four decimal places. Use these numbers for subsequent calculations. Round allocated costs to the nearest dollar. If an amount is zero, enter "0". Allocation ratios: Power General Factory Purchasing Pesticide Liquid Fertilizer Square feet 0.1250 0 0.1250 0.3500 0.4000 Machine hours 0 0 0 0.7500 0.2500 Purchase orders 0.1000 0 0 0.6000 0.3000 Cost allocation: Power General Factory Purchasing Pesticide Liquid Fertilizer Direct costs 90,000 $ 314,000 $ 165,000 78,500 $ 107,700 General Factory 39,250 -314,000 39,250 109,900 125,600 Purchasing 20,425 -204,250 122,550 61,275 Power -149,675 112,256 37,419 Total 0 0 0 423,206 331,994 2. Using machine hours, compute departmental overhead rates. (Round the overhead rates to the nearest cent.) Overhead Rates Pesticide 17.63 per machine hour 41.50 per machine hour Liquid Fertilizer
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