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1. MeDuff Company uses a job-order costing system to compute product costs. There are two producing departments (P1 and P2) and two support departments (S1

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1. MeDuff Company uses a job-order costing system to compute product costs. There are two producing departments (P1 and P2) and two support departments (S1 and 52). The costs incurred in S1 and S2 are allocated to Departments A and B and included in their factory overhead rates for costing products. Si costs are allocated based on the number of employees, S2 costs are allocated based on direct labor hours, and the production departmental overhead rates are also based on direct labor hours. The following data are available for a recent period: Direct department costs Number of employees Direct labor hours S1 S2 P1 P2 $12,000 $18,000 $70,000 $117.500 81 12 48 72 450 325 2.250 1.800 Required: Prepare a schedule allocating the support department costs to the producing departments using the sequential allocation method. The department with the greatest percentage of interdepartmental services should be allocated first. 15 points 2. Sales for October, November, and December are expected to be $200,000, $180,000, and $220,000, respectively, for the Gurumai Company. All sales are on account (terms 2/15, net 30 days) and are collected 50 percent in the month of sale and 50 percent in the following month. Materials are purchased in the month needed, and all purchases and expenses are paid for as incurred. Estimated beginning cash balance is $40,000. Activities for the quarter are expected to be: October November December Materials used $40,000 $36,000 $44,000 Salaries 70,000 68,000 72,000 I Maintenance and repairs 18,000 18,000 18,000 Depreciation 36,000 36,000 36,000 Utilities and other 14,000 14,000 14.000 Dividends paid -0- 10,000 -0- Payment on bonds 8,000 8,000 8,000 Required: Using the given information, prepare a cash budget for November Gus

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