The Garrett Mixing Company has two producing departments, Mixing and Finishing, and two service departments, Cafeteria and Product Design. The company assigns service department costs to other service departments; however, after a department's costs have been distributed, no costs are assigned back to it. Cafeteria is distributed first, based on the number of employees, and Product Design is distributed based on the number of product orders. In calculating predetermined overhead rates, machine hours are used as the basis in both producing departments.
The following estimated data are provided:

Required:
Develop predetermined overhead rates for the Mixing and Finishing departments.

Transcribed Image Text:

Product Design $50,000 Mixing Finishin $200,000 130 200 60,000 Cafeteria Budgeted overhead ..$10,000 Number of employees Number of product orders Machine hours . $100,000 65 100 40,000 10