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 $140,400 $190,800 $97,000 $56,000 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 _________ ________ Proportion of square footage _________ ________ Cost Allocations Pottery Retail Power $_______ $______ General _______ ______ Direct costs _______ ______ _________________________ $_______ $______ _________________________ _________________________ 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 GeneralFactory Pottery Retail Machine hours _____ _____ _____ _____ Square footage _____ _____ _____ _____ Cost Allocations Power GeneralFactory Pottery Retail Direct costs $_____ $_____ $_____ $_____ General Factory _____ _____ _____ _____ _____ _____ Power _____ _____ _____ _____ ______________________________________ Cost afterallocation $_____ $_____ $_____ $_____ ______________________________________ ______________________________________ 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 GeneralFactory Pottery Retail Machine hours _____ _____ _____ _____ Square footage _____ _____ _____ _____ Cost Allocations Pottery Retail General Factory $______ $______ Power ______ ______ Direct costs ______ ______ ________________________ Cost after allocation $______ $______ ________________________ ________________________