Quillen Company manufactures a product in a factory that has two producing departments, Cutting and Sewing, and two support departments, S1 and S2. The activity driver for S1 is number of employees, and the activity driver for S2 is number of maintenance hours. The following data pertain to Quillen:

	Support Departments		Producing Departments
	S1	S2		Cutting	Sewing
Direct costs	$180,000	$150,000		$122,000	$90,500
Normal activity:
Number of employees		30		63	147
Maintenance hours	1,200			16,000	4,000

Assume that Quillen uses the sequential method to allocate support department costs. S1 is allocated first, then S2.

Required:

1. Calculate the cost assignment ratios to be used under the sequential method for S2, Cutting, and Sewing. Enter your answers as decimal values, carried out to four decimal places, if necessary.

Allocation ratios for S1:

S2	fill in the blank 1
Cutting	fill in the blank 2
Sewing	fill in the blank 3

Allocation ratios for S2:

Cutting	fill in the blank 4
Sewing	fill in the blank 5

2. Allocate the overhead costs to the producing departments by using the sequential method. Use a minus sign to indicate a subtraction. For those boxes in which no entry is required, leave the box blank or enter zero ("0").

Support Departments

Producing Departments

Allocate:

S1

S2

Cutting

Sewing

Direct costs

$fill in the blank 6

$fill in the blank 7

$fill in the blank 8

$fill in the blank 9

S1

fill in the blank 10

fill in the blank 11

fill in the blank 12

fill in the blank 13

S2

fill in the blank 14

fill in the blank 15

fill in the blank 16

fill in the blank 17

Total

$fill in the blank 18

$fill in the blank 19

$fill in the blank 20

$fill in the blank 21