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The Oakman Company manufactures products in two depsitments: Maing and Packaging. The company was alocating manufacturing overhead using a singlo plantwide rate of $2.25 with direct labor hours as the slocabion base. The company has refined is aloceation system by separating manulocturing overheod costs into two cost pools-one foc each department, The estimated costs for the Mxing Departrient, 5510.000, will be allocsted bosed en drect isbor heurs, and the estrinaiod dieect labor houn for the year are 170,000 . The estmated costs for the Packaging Department, $300,000, will be alocavod based on machine hours, and the esimated machine hours for the year are 40,000 . In Octaber, the company incurred 38,000 drect labor hours in the Moing Department and 10,000 . machine hours in the Packaging Departmert Rend the tequiements. Requirement 1. Compute the predetermined ovecheod allocasion rales. Round to two decimal places Begin by selecting the formila to calculate the predetemined ovechead (O.*) atocation rase. Then enter the amounts to compute the aligcasion rate for each department. Requirement 2. Delemine the lotal amount of overteat alocates in October; Begin by lebeting the formua to alotate overhad conts Alocated maly - overtead coith Compies the covertead allocated in October for each deportment and the lotal for boen depactments. allocation base. Requirements refined its allocation system by allocated based on direct labor hachine hours, and the estim the Packaging Department 1. Compute the predetermined overhead allocation rates. Round to two decimal places. 2. Determine the total amount of overhead allocated in October. Compute the predetermined ove ing the formula to calculate the pr The Oakman Company manufactures products ir labor hours as the allocation base. The company has refined its allocation system by $510,000, will be allocated based on direct labor allocated based on machine hours, and the estim machine hours in the Packaging Department. Read the requirements. Compute the overhead allocated in October for each department and thi

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