Comparison of Methods of Allocation Duweynie Pottery, Inc., is divided into two operating divisions: Pottery and Retall. The company allocates Power and General Factory dement 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 fort. No effort is made to seperate fixed and variable costs; however, only budgeted costs are allocated. Allocations for the coming year are based on the following ta: Use the rounded values for subsequent calculations. Support Departments Power Overhead costs $150,000 Machine hours 2,000 Square footage 2.500 Operating Divisions General Factory Pottery Retail $181,200 $98,000 $57,000 2,500 7,000 3,000 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. Note: Input to two decimal places. Allocation Ratios Proportion of machine ours Cost Allocations Pottery Potts 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 0.7 0.3 Square footage 0.2 0 0.32 0.48 Cost Allocations Power General Factory Pottery Retail Direct costs 150,000 181,200 98,000 57,000 General Factory x Power Cost after allocation 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 Power Cost after allocation. 000 000. 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 Machine hours Square footage Power General Factory Pottery Cost Allocations Pottery Retail General Factory Power Dued costs Cast after allocation i Check My Work Retail Next>>