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omework 5 (Ch 7) eBook Calculator Comparison of Methods of Allocation Duweynie Pottery, Inc., is divided into two operating divisions: Pottery and Retail. The company allocates Power and General Factory departmer allocated. Allocations for the coming year are based on the following data: Use the rounded values for subsequent calculations. Support Departments Operating Divisions Power General Factory Pottery Retail Overhead costs $159,600 $181,200 $97,000 $55,000 Machine hours 2,000 2,500 7,000 3,000 Square footage 2,500 1,700 4,000 6,000 Round all allocation ratios to four significant digits. Round all allocated amounts to the nearest dollar. Required: 1. Allocate the support service costs using the direct method. Note: Input to two decimal places. Allocation Ratios Pottery Retail Proportion of machine hours 0.7 0.3 Proportion of square footage 0.4 0.6 Cost Allocations Pottery Retail Power $ 111,720 47,880 General Factory 72,480 108,720 Direct costs 97,000 55,000 281,200 $ 211,600 2. Allocate the support service costs using the sequential method. The support departments are ranked in order of highest cost to lowest cost. Note: If an amount is zero, enter "O". Input to two decimal places. Allocation Ratios Power General Factory Pottery Retail Machine hours 0 0 0.7 0.3 Square footage 0.2 0 0.32 0.48 Cost Allocations Power General Factory Pottery Retail Direct costs 159,600 181,200 97,000 55,000 General Factory 36,240 181,200 X 0 x 57,984 86,976 Power 195,840 x 137,088 0 x 58,752 Cost after allocation $ 07 0 292,072 $ 200,728 Check My Work mework 5 (Ch 7) eBook Calculator General Factory 72,480 108,720 Direct costs 97,000 55,000 $ 281,200 $ 211,600 2. Allocate the support service costs using the sequential method. The support departments are ranked in order of highest cost to lowest cost. Note: If an amount is zero, enter "0". Input to two decimal places. Allocation Ratios Power General Factory Pottery Retail Machine hours 0 0 0 0.7 0.3 Square footage 0.2 07 0.32 0.48 Cost Allocations Power General Factory Pottery Retail Direct costs $ 159,600 181,200 $ 97,000 $ 55,000 General Factory 36,240 181,200 X 0 57,984 0 X 86,976 Power 195,840 x 137,088 0 0 X 58,752 Cost after allocation $ 0 $ 0 $ 292,072 7 $ 200,728 3. Allocate the support service costs using the reciprocal method. Note: If an amount is zero, enter "0". Input to two decimal places. Allocation Ratios Power General Factory Pottery Retail Machine hours 0 0.2 0.56 0.24 Square footage 0.2 0 0.32 0.48 Cost Allocations Pottery Retail General Factory 1,065,60 X $ 1,704,96 Power 487,200 X 208,800 X Direct costs 97,000 55,000 Cost after allocation $1,720,84 x 1,968,76 X Feedback YG My Work 1. All three methods allocate all support department costs to the producing departments. The direct method allocates from support to producing depart 2. Cost allocations are performed in step-down fashion, following a predetermined ranking procedure. Starting with the top ranking department all costs 3. The reciprocal method takes full account of support department reciprocity, Check My Work Assignment Score: 91.63%