Overhead costs using sequential method

Reference no: EM13157445

Delille Company manufactures both traditional toothpaste and gel toothpaste, with each type of toothpaste produced in separate departments. Three support departments support the production departments: power, general factory, and personnel. Budgeted data on 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 10,000 7,200

# of employees 8 13 7 18 14

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

1. Allocate the overhead costs to the producing departments using the sequential method

2. Using machine hours, compute departmental overhead rates.

Reference no: EM13157445

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