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Please put the working notes. Thank youuu. EXERCISE 11. Duweynie Pottery, Inc., is divided into two operating divisions: Pottery and Retail. The company allocates Power
Please put the working notes. Thank youuu.
EXERCISE 11. 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: Support Departments Operating Divisions Power General Factory Pottery Retail Overhead costs P150,000 P160,000 P98,000 P56,000 Machine hours 2,000 1,000 6,900 3,100 Square footage 2,000 1,700 4,000 6,000 Round all allocation ratios to four significant digits and all allocated amounts to nearest peso. 1. Allocate the support service costs using the direct method. 2. Allocate the support service costs using the sequential method. The support departments are ranked in order of highest cost to lowest cost. 3. Allocate the support service costs using the reciprocal methodStep by Step Solution
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