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Comparison of Methods of Allocation Duwevnie Pottery, Incy, is divided into two operating divisions: Pottery and Retail. The company atlocates Power and General Foctory department
Comparison of Methods of Allocation Duwevnie Pottery, Incy, is divided into two operating divisions: Pottery and Retail. The company atlocates Power and General Foctory department costs to each operating division. Power costs are allocated on the bosis 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, onty budgeted costs are allocated. Alocations for the coming year are bsted on the following dotal Use the rounded values for subsequent calculations. Round all alfocation 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. Noter Input to two decimal places. 2. Alocate the support service costs using the sequential method. The support departments are ronked in order of highest cost to lowest cost. Note: If an amount is zero, enter " 0 ". Input to two decimal places. 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. 3. Allocate the support service costs using the reciprocal method. Notes If an amount is zero, enter "0". Input to two decimal places. 3. Allocate the suppot service costs using the reciprocal method. Notet If an amount is zero, enter "0". Input to two decimal places
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