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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
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 in number of maintenance hours. The following data pertain to Quillen: Refer to the information for Quillen Company above. Required: Calculate the cost assignment ratios to be used under the direct method tor Departments S1 and S2. (Note: Each support department will have two ratios-one for Cutting and the other Sewing.) Allocate the support department costs to the producing departments by using the direct method. Refer to the information for Quillen Company above. Now assume that Quillen uses the sequential method to allocate support department costs. $1 is allocated first, then S2. Calculate the cost assignment ratios to be used under the sequential method for S2, Cutting, and Sewing. Carry out your answers to four decimal places. Allocate the overhead costs to the producing departments by using the sequential method. 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 in number of maintenance hours. The following data pertain to Quillen: Refer to the information for Quillen Company above. Required: Calculate the cost assignment ratios to be used under the direct method tor Departments S1 and S2. (Note: Each support department will have two ratios-one for Cutting and the other Sewing.) Allocate the support department costs to the producing departments by using the direct method. Refer to the information for Quillen Company above. Now assume that Quillen uses the sequential method to allocate support department costs. $1 is allocated first, then S2. Calculate the cost assignment ratios to be used under the sequential method for S2, Cutting, and Sewing. Carry out your answers to four decimal places. Allocate the overhead costs to the producing departments by using the sequential method
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