Ch7 Homework Assignment Direct Method and Overhead Rates eBook Jaume Company manufactures both pesticide and squid 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 Power Overhead $90,000 General Factory $314,000 Liquid Purchasing Pesticide Fertilizer $169,000 $78,500 $107,400 Square feet 1,500 1,500 4,200 4,800 Machine hours Purchase orders 20 1,403 40 1,345 7 24,000 120 8,000 60 00 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 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 t values for the subsequent calculations Cost assignment: Pesticide Liquid Fertilizer Direct costs 78,500 107,400 Power General Factory Purchasing Check My Work Overhead $90,000 $314,000 $169,000 $78,500 $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 40 120 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. 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: Direct costs Power Pesticide 78,500 Liquid Fertilizer 107,400 General Factory Purchasing Total 2. Using machine hours, compute departmental overhead rates. (Round the overhead rates to the nearest cent.) Pesticide Liquid Fertilizer. Check My Work Departmental overhead rates per machine hour per machine hour Next