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can someone please work this out step by stwp showing how? i do not think the current answers are correct, it is all one problem.
can someone please work this out step by stwp showing how? i do not think the current answers are correct, it is all one problem. thanks!
Comparison of Methods of Allocation 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 Power General Factory Pottery Retail Overhead costs $150,000 $160,000 $98,000 $56,000 Machine hours 2,000 1,000 6,900 3,100 Square footage 2,000 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. Retall Allocation Ratios Proportion of machine hours Proportion of square footage Pottery 0.69 0.31 0.4 0.6 Cost Allocations Pottery Retail Power 60,000 90,000 1. Allocate the support service costs using the direct method. Allocation Ratios Pottery Retail Proportion of machine hours 0.69 0.31 Proportion of square footage 0.4 0.6 Cost Allocations Pottery Retail Power 60,000 90,000 General Factory 110,400 49,600 Direct costs 98,000 56,000 268,400 195,600 2. Allocate the support service costs using the sequential method. The support departments are ranked in order of highest cost to lowest cost. If an amount is zero, enter "0" Allocation Ratios Power General Factory Pottery Retail Machine hours 0 0 0.69 0.31 Square footage Cost Allocations Power General Factory Pottery Retail Direct costs Fanny 2. Allocate the support service costs using the sequential method. The support departments are ranked in order of highest cost to lowest cost. If an amount is zero, ente "0" Allocation Ratios Power Retail General Factory Pottery 0 0 0.69 0.31 Machine hours Square footage Power Cost Allocations General Factory Pottery Retail Direct costs General Factory Power Cost after allocation 3. Allocate the support service costs using the reciprocal method. If an amount is zero, enter"0", Allocation Ratios Power General Factory Pottery Retail Machine hours Sunrefontar COSL Allocations Power General Factory Pottery Retail Direct costs General Factory ull III IO I Power Cost after allocation 3. Allocate the support service costs using the reciprocal method. If an amount is zero, enter "O". Allocation Ratios Power General Factory Pottery Retail Machine hours Square footage Cost Allocations Pottery Retail General Factory 58,766 88,158 Power 112,533 50,553 Direct costs 98,000 56,000 Cost after allocation 269,299 94,711 COSL Allocations Power General Factory Pottery Retail Direct costs General Factory III III 10 Power Cost after allocation 3. Allocate the support service costs using the reciprocal method. If an amount is zero, enter "O". Allocation Ratios Power General Factory Pottery Retail Machine hours Square footage Cost Allocations Pottery Retail General Factory 58,766 88,158 Power 112,533 50,553 Direct costs 98,000 56,000 Cost after allocation 269,299 94,711 Step by Step Solution
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