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Calculator Comparison of Methods of Allocation Power Duweynie Pottery, Inc., is divided into two operating divisions: Pottery and Retail. The company allocates Power and General

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Calculator Comparison of Methods of Allocation Power 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 General Factory Pottery Retail Overhead costs $150,000 $162,000 $96,000 $56,000 Machine hours 2,000 2,500 7,000 3,000 Square footage 2,500 1,700 4,000 6,000

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