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Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments: Support Departments Producing Departments General Factory
Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments: Support Departments Producing Departments General Factory Receiving Assembly Finishing Direct overhead $400,000 $160,000 $43,000 $74,000 Square footage 2,700 5,400 5,400 Number of receiving orders 300 - 1,020 1,680 25,000 Direct labor hours 40,000 The support departments are ranked in order of highest cost to lowest cost. Required: 1. Allocate the costs of the support departments using the sequential method. (Use the rounded values for subsequent calculations. Round allocation ratios to four significant digits. Round allocated costs to the nearest dollar. If an amount is zero, enter "0".) Allocation ratios: Receiving Assembly Finishing Square footage Number of receiving orders 0 Allocations: General Factory Receiving Assembly Finishing Direct overhead cost $ 400,000 $160,000 $ 43,000 $ 74,000 Allocate: General Factory 160,000 160,000 -400,000 0 80,000 -240,000 Receiving Total
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