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Appendix 4B) Assigning Support Department Costs by Using the Direct Method Quillen Company manufactures a product in a factory that has two producing departments, Cutting
Appendix 4B) Assigning Support Department Costs by Using the Direct Method Quillen Company manufactures a product in a factory that has two producing departments, Cutting and Sewing, and two support departments, S1 and 52. The activity driver for S1 is number of employees, and the activity driver for S2 is number of maintenance hours. The following data pertain to Quillen: Support Departments Producing Departments si Cutting Sewing Direct costs $180,000 $150,000 $122,000 $90,500 S2 Normal activity: Number of employees 63 147 Maintenance hours 1,200 16,000 4,000 Required: 1. Calculate the cost assignment ratios to be used under the direct method for Departments Si and S2. (Note: Each support department will have two ratios-one for Cutting and the other for Sewing.) Enter your answers as decimal values. S1 S2 4 X Cutting Sewing 30 x 1 47 X 147 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 ("O"). Support Departments Producing Departments Allocate: S1 Cutting Sewing Direct costs $ 180,000 $ 150,000 $ 122,000 $ 90,500 . Allocate the support department costs to the producing departments by using the direct method. Use a minus sign to indica ubtraction. For those boxes in which no entry is required, leave the box blank or enter zero ("0"). Support Departments Producing Departments Allocate: Si Cutting 122,000 Sewing 90,500 Direct costs $ 180,000 $ 150,000 $ $ $1 22,500 X 122,000 110,250 X S2 138,000 Total 0 $ Feedback Check My Work Partially correct
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