The Ortman Company manufactures products in two departments: Mixing and Packaging. The company was allocating...
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The Ortman Company manufactures products in two departments: Mixing and Packaging. The company was allocating manutacturing overhead using a single plantwide rale of $220 with direct labor hours as the allocation base. The company has refined its allocabion system by separating manufactunng overhead costs into two cost pools-one for each department: The estimated costs for the Mixing Department, $520,000, will be allocated based on direct labor hours, and the estimated direct labor hours for the year are 200,000. The estimated costs for the Packaging Department, $90,000, will be allocated based on machine hours, and the estimated machine hours for the year are 25,000 . In October, the company incurred 1,000 direct labor hours in the Mixing Department and 12,000 machine hours in the Packaging Department. Read the reguirements: Requirement 1. Compute the predotermined overthead allocation rates. Round to two decimal places. Begin by selecting the formula to calculate the predetermined overhead (OH) allocation rate. Then enter the amounts to compute the alocation rate for each department. Requirement 2. Determine the total amount of overhead allocated in October. Begin by selecting the formula to allocate overhead costs
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