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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 Overhead costs Machine hours Square footage Power $140,400 2,000 2,500 General Factory $171,600 2,500 1,700 Pottery $98,000 7,000 4,000 Retail $58,000 3,000 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 hours Proportion of square footage Pottery Retail Retail Cost Allocations Power General Factory Direct costs Pottery 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 Input to two decimal places. Allocation Ratios Machine hours Square footage Cost Allocations Direct costs General Factory Cost after allocation Power Power 122,304 52,416 General Factory General Factory 3. Allocate the support service costs using the reciprocal method. Note: If an amount is zero, enter Input to two decimal places. Pottery 0.32 Pottery 122,304 Pottery 0.56 0.32 Retail 0.48 Retail 82,368 52,416 Retail 0.24 0.48 Allocation Ratios Machine hours Square footage Cost Allocations General Factory Direct costs Cost after allocation Power General Factory Retail