$($Appendix $4$B$)$ Assigning Support Department Costs by Using the Direct Method

Sanjay Company manufactures a product in a factory that has two producing departments, Assembly and Painting, and two support departments, S$1$ and S$2.$ The activity driver for S$1$ is square footage, and the activity driver for S$2$ is number of machine hours. The following data pertain to Sanjay:

Support Departments Producing Departments

S$1$ S$2$ Assembly Painting

Direct costs $$200,000$ $$140,000$ $$115,000$ $$96,000$

Normal activity:

Square footage $5001,875625$

Machine hours $3373,20012,800$

Required:

$1.$ Calculate the cost assignment ratios to be used under the direct method for Departments S$1$ and S$2.($Note: Each support department will have two ratios$$one for Assembly and the other for Painting.$)$ Round your answers to two decimal places.

Assembly Painting

S$1$ fill in the blank $1$ fill in the blank $2$

S$2$ fill in the blank $3$ fill in the blank $4$

$2.$ Allocate the support department costs to the producing departments by using the direct method. Use a minus sign to indicate a subtraction. For those boxes in which no entry is required, leave the box blank or enter zero $("0").$

Support Departments Producing Departments

Allocate: S$1$ S$2$ Assembly Painting

Direct costs $fill in the blank $5$ $fill in the blank $6$ $fill in the blank $7$ $fill in the blank $8$

S$1$ fill in the blank $9$ fill in the blank $10$ fill in the blank $11$ fill in the blank $12$

S$2$ fill in the blank $13$ fill in the blank $14$ fill in the blank $15$ fill in the blank $16$

Total $fill in the blank $17$ $fill in the blank $18$ $fill in the blank $19$ $fill in the blank $20$