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(Appendix 4B) Sequential Method Quillen Company manufactures a product in a factory that has two producing departments, Cutting and Sewing, and two support departments, S1
(Appendix 4B) Sequential Method Quillen Company manufactures a product in a factory that has two producing departments, Cutting and Sewing, and two support departments, S1 and S2. 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 s1 s2 $180,000 $150,000 Producing Departments Cutting Sewing $122,000 $90,500 Direct costs Normal activity: Number of employees - 30 63 16,000 1477 4,000 Maintenance hours 1,200 Assume that Quillen uses the sequential method to allocate support department costs. Si is allocated first, then 52. 1. Calculate the cost assignment ratios to be used under the sequential method for S2, Cutting, and Sewing. Enter your answers as decimal values, carried out to four decimal places, if necessary. Allocation ratios for S1: S2 Cutting Sewing Allocation ratios for S2: Cutting Sewing 2. Allocate the overhead costs to the producing departments by using the sequential 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: Sz S2 Cutting Sewing Direct costs $ S1 Total
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