Duweynie Pottery, Inc., is divided into two operating divisions: Pottery and Retail. The company allocates Power and General Factory department costs to each operating division. Power costs are allocated on the basis of the number of machine hours and general factory costs on the basis of square footage. No effort is made to separate fixed and variable costs; however, only budgeted costs are allocated. Allocations for the coming year are based on the following data: Use the rounded values for subsequent calculations. Support Departments Operating Divisions Power General Factory Pottery Retail Overhead costs $150,000 $171,600 $97,000 $55,000 Machine hours 2,000 2,500 7,000 3,000 Square footage 2,500 1,700 4,000 6,000 Round all allocation ratios to four significant digits. Round all allocated amounts to the nearest dollar. Required: 2. Allocate the support service costs using the sequential method. The support departments are ranked in order of highest cost to lowest cost. Note: If an amount is zero, enter "0". Input to two decimal places. Allocation Ratios Power General Factory Pottery Retail Machine hours fill in the blank fill in the blank fill in the blank fill in the blank Square footage fill in the blank fill in the blank fill in the blank fill in the blank Cost Allocations Power General Factory Pottery Retail Direct costs $fill in the blank $fill in the blank $fill in the blank $fill in the blank General Factory fill in the blank fill in the blank fill in the blank fill in the blank fill in the blank fill in the blank Power fill in the blank fill in the blank fill in the blank fill in the blank Cost after allocation $fill in the blank $fill in the blank $fill in the blank $fill in the blank
Duweynie Pottery, Inc., is divided into two operating divisions: Pottery and Retail. The company allocates Power and General Factory department costs to each operating division. Power costs are allocated on the basis of the number of machine hours and general
Support Departments | Operating Divisions | ||||||
Power | General Factory | Pottery | Retail | ||||
Overhead costs | $150,000 | $171,600 | $97,000 | $55,000 | |||
Machine hours | 2,000 | 2,500 | 7,000 | 3,000 | |||
Square footage | 2,500 | 1,700 | 4,000 | 6,000 |
Round all allocation ratios to four significant digits. Round all allocated amounts to the nearest dollar.
Required:
2. Allocate the support service costs using the sequential method. The support departments are ranked in order of highest cost to lowest cost.
Note: If an amount is zero, enter "0". Input to two decimal places.
Allocation Ratios | Power | General Factory | Pottery | Retail |
Machine hours | fill in the blank | fill in the blank | fill in the blank | fill in the blank |
Square footage | fill in the blank | fill in the blank | fill in the blank | fill in the blank |
Cost Allocations | Power | General Factory | Pottery | Retail |
Direct costs | $fill in the blank | $fill in the blank | $fill in the blank | $fill in the blank |
General Factory | fill in the blank | fill in the blank | ||
fill in the blank | fill in the blank | |||
fill in the blank | fill in the blank | |||
Power | fill in the blank | fill in the blank | ||
fill in the blank | fill in the blank | |||
Cost after allocation | $fill in the blank | $fill in the blank | $fill in the blank | $fill in the blank |
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