Determine total product cost using the sequential method of

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Delille Company manufactures both traditional toothpaste and geltoothpaste, with each type of toothpaste produced in separate departments. Three support departments support the production departments: power, general factory, and personnel. Budgeted dataon the five departments are as follows:

Support Departments Producing Departments
Power General Factory Personnel
Traditional Gel
Overhead $90,000 $300,000 $120,000 $137,500 $222,500
Machine hours - 1,403 1,345 8,000 24,000
Square feet 3,600 - 2,400 10,800 7,200
Number of employees 8 13 7 18 14

The company does not break overhead into fixed and variablecomponents. The bases for allocation are: power-machine hours,general factory-square feet, and personnel-number of employees.

You may use the attached spreadsheet to solve this activity. Youwill find the spreadsheet by clicking on the paper clip found inthe upper left hand corner of the screen.

Required:

  1. Determine total product cost using the sequential method of overhead allocation. (Take allocation ratios out to four significant digits.)
  2. Using machine hours, compute departmental overhead rates. Roundto two decimal places.

Reference no: EM13481662

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