$3$B$.$ Cost Allocation $-$ Support Department $(25\%)$

XL Company manufactures both sunscreen and tubes of lip balm, 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:

Allocate the overhead costs to the producing departments using the direct method.

$($Take allocation ratios out to two digits.$)$

Allocate the overhead costs to the producing departments using the sequential

method. $($Take allocation ratios out to two digits.$)$

Using machine hours, compute departmental overhead rates for both methods.

$($Round the overhead rates to the nearest cent.$)$