The Oakman Company manufactures products in two​ departments: Mixing and Packaging. The company was allocating manufacturing overhead using a single plantwide rate of $2.40 with direct labor hours as the allocation base.   The company has refined its allocation system by separating manufacturing overhead costs into two cost pools—one for each department. The estimated costs for the Mixing​ Department, $493,500​, will be allocated based on direct labor​ hours, and the estimated direct labor hours for the year are 210,000. The estimated costs for the Packaging​ Department, $76,250​, will be allocated based on machine​ hours, and the estimated machine hours for the year are 25,000. In October​, the company incurred 20,000 direct labor hours in the Mixing Department and 13,000 machine hours in the Packaging Department.   Requirement 1. Compute the predetermined overhead 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 allocation rate for each department.               Predetermined OH   ? ÷ ? = allocation rate Mixing ? ÷ ? = ? Packaging ? ÷ ? = ? Requirement 2. Determine the total amount of overhead allocated in October.   Begin by selecting the formula to allocate overhead costs.               Allocated mfg.   ? × ? = overhead costs Compute the overhead allocated in Octoberfor each department and the total for both departments.   Mixing ? Packaging ? Total ?

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The Oakman Company manufactures products in two​ departments: Mixing and Packaging. The company was allocating manufacturing overhead using a single plantwide rate of $2.40 with direct labor hours as the allocation base.
 
The company has refined its allocation system by separating manufacturing overhead costs into two cost pools—one for each department. The estimated costs for the Mixing​ Department, $493,500​, will be allocated based on direct labor​ hours, and the estimated direct labor hours for the year are 210,000. The estimated costs for the Packaging​ Department,
$76,250​, will be allocated based on machine​ hours, and the estimated machine hours for the year are 25,000. In October​, the company incurred
20,000 direct labor hours in the Mixing Department and 13,000 machine hours in the Packaging Department.
 
Requirement 1. Compute the predetermined overhead 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 allocation rate for each department.
 
 
 
 
 
 
 
Predetermined OH
 
?
÷
?
=
allocation rate
Mixing
?
÷
?
=
?
Packaging
?
÷
?
=
?
Requirement 2. Determine the total amount of overhead allocated in
October.
 
Begin by selecting the formula to allocate overhead costs.
 
 
 
 
 
 
 
Allocated mfg.
 
?
×
?
=
overhead costs
Compute the overhead allocated in Octoberfor each department and the total for both departments.
 
Mixing
?
Packaging
?
Total
?
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