The oswell Company manufactures products in to the apartment. Mixing ans packagi

Question

The oswell Company manufactures products in to the apartment. Mixing ans packaging. The company was allocating manufacturing overhead using a single plant wide range of $2.30 with direct labor hours as the allocation base. The company has refined as allocation system by separating manufacturing overhead costs into to cost pools one for each department. The estimated cost for the mixing department $470,000 will be allocated based on direct labor hours and the estimated direct labor hours for the year or 200,000. The estimated cost for the packaging department $167,750 Will be allocated based on machine hours in the estimated machine hours for the year are 55000. In October the company incurred 36,000 direct labor hours in the mixing department and 13,000 machine hours in the packaging department The Oswell Company manufactures products in two departments: Mixing and Packaging. The company was allocating manufacturing overhead un Read the requirements Requirement 1. Compute the predetemined overhead allocation rates. Round to two decimal places Begin by selecting the formula to cakculate the predetermined overhead (On) allocation rate. Then enter the amounts to compute the alocation rate & Esimated overthead costsEssmated aty of the alocalion base Estimated overhead costs Moing Packaging Requirement 2. Determine the total amount of overhead alocated in October Begin by selecting the formula to alocate overhead costs 1. D Compute the overhead allocated in Octaber for each department and the total for both depardments Mixng Packaging Total aihy last or anter any number in the inout elds and then consinue to the nest quesions O Type here to search Oo

Explanation / Answer

1 Predetemined overhead allocation rate=Estimated overhead costs/Estimated quantity of the allocation base Estimated Overhead Costs Estimated Quantity of allocation base Predetermined OH allocation rate Mixing 470000 200000 2.35 Packaging 167750 55000 3.05 2 Allocated mfg overhead costs=Predetermined overhead allocation rate*Actual quantity of the allocation base used Predetermined OH allocation rate Actual Qty of allocation base Allocated mfg overhead cost Mixing 2.35 36000 84600 Packaging 3.05 13000 39650

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