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Jasmine Company manufactures both pesticide and liquid fertilizer, with each product manufactured in separate departments

Accounting

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 $316,000 $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 0.125 0.125 0.35 0.4 ? Machine hours 0.75 0.25 Purchase orders 0.1 ? 0.6 0.3 Cost allocation: Power General Factory Purchasing Pesticide Liquid Fertilizer Direct costs 90,000 $ 316,000 ? $ 165,000 ? 78,800 ? 107,700 ? General Factory 39,500 316,000 39,500 110,600 126,400 Purchasing 16,500 x 125,500 X 99,000 X 49,500 x Power 146,000 X 67,500 x 22,500 X Total s o ? s o ? $ 380,650 x $ 297,850 x 2. Using machine hours, compute departmental overhead rates. (Round the overhead rates to the nearest cent.) Overhead Rates Pesticide $ per machine hour Liquid Fertilizer $ per machine hour

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