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Pagilla Company manufactures both sunscreen and tubes of lip balm, with each prod- uct manufactured...

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Accounting

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Pagilla Company manufactures both sunscreen and tubes of lip balm, with each prod- uct manufactured in separate departments. Three support departments support the pro- duction departments: power, general factory, and purchasing. Budgeted five departments are as follows: data on the Producing Departments Support Departments Power General Factory Purcbasing Sunscreen Lip Balm Overhead Square feet Machine hours Purchase.orders $120,000 $540,000 $220,000 $137,500 $222,500 9,600 8,400 1,345 8,000 24,000 3,000 3,000 1,403 40 20 7 60 120 Th e company does not break overhead into fixed and variable components. The bases feet, and purchasing- for allocation are: power-machine hours, general factory-square purchase orders. Required: 1. Allocate the overhead costs to the producing departments using the direct method. (Take allocation ratios out to four significant digits.) 2. Using machine hours, compute departmental overhead rates. (Round the over- head rates to the nearest cent.) Required: 1. Allocate the overhead costs to the producing departments using the sequential method. (Take allocation ratios out to four significant digits.) 2. Using machine hours, compute departmental overhead rates. (Round the over- head rates to the nearest cent.)

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