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 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 5140.400 $131,200 $98.000 $56,000 Machine hours 2,000 2.500 7,000 3,000 Square footage 2,500 1,700 4,000 Round all location ratios to four significant digits. Round all allocated amounts to the nearest dollar Required: 5.000 1. Allocate the support service costs using the direct method. Note: Input to two decimal places Pottery Retail Allocation latios Proportion of machine hours Proportion of sare footage Pottery Cost Allocations Amazing transformation mytomat.com Od My Workmore Check My Work o IN @ O ligi Cost Allocations Pottery Retail Power 111,720 X 47,800 X General Factory 72,180 108,720 Direct costs 97,000 X 55,000 X 281,200 X 211,600 X 2. Allocate the support service costs using the sequential method. The support departments are ranked order of highest cost to Note: If an amount is zero, enter "O". Input to two decimal places. Allocation Ratios Power General Factory Pottery Retail Machine hours 0.14 X 0.17 X 0.48 X 0.21 X Square footage 0.18 X 0.12 X 0.28 X 0.42 X Cost Allocations Power Pottery Retail Direct costs 159,600 X General Factory 181,200 -181,200 x 97,000 x 55,000 General Factory 36,240 57,984 Power 137,088 X 159 san x 58757 Check My Workmore Check My Works remaning All work saved D o "prise = & 7 O 8 9 O) 4 5 eBook Calculator CODECS TOW NUTY TURY Direct costs 159,600 X 181,200 97,000 X $ 55,000 X General Factory 36, 240 -181,200 x 57,984 86,976 Power 137,088 X -159,840 X 58,752 X Cost after allocation 292,072 X 200,728 X 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 Pottery Retail General Factory 0.17 X Machine hours 0.14 X 0.48 x 0.21 X Square footage 0.18 X 0.12 x 0.28 0.42 x Cost Allocations Pottery Retail General Factory 2,500 X 0 X Power Direct costs Check My Work 3 more Check My Work uses remaining All work saved O i E E II prt sc