Sequential Method

Belami Company manufactures both shampoo and conditioner, with each product manufactured in separate departments. Three support departments support the production departments: Power, General Factory, and Purchasing. Budgeted data on the five departments are as follows:

	Support Departments	Producing Departments
	Power	General Factory	Purchasing	Shampoo	Conditioner
Overhead	$80,000	$312,000	$165,000	$78,800	$107,700
Square feet	3,000		3,000	9,600	8,400
Machine hours		1,403	1,345	8,000	24,000
Purchase orders	20	40		60	120

The company does not break overhead into fixed and variable components. The bases for allocation are powermachine hours; general factorysquare feet; and purchasingpurchase orders.

The company has decided to use the sequential method of allocation instead of the direct method. The support departments are ranked in order of highest cost to lowest cost.

Required:

1. Allocate the overhead costs to the producing departments using the sequential method. Carry out allocation ratios to four decimal places. Use these numbers for subsequent calculations. Round allocated costs to the nearest dollar. If an amount is zero, enter "0".

Allocation ratios:

	Power	General Factory	Purchasing	Shampoo	Conditioner
Square feet	fill in the blank 1	fill in the blank 2	fill in the blank 3	fill in the blank 4	fill in the blank 5
Machine hours	fill in the blank 6	fill in the blank 7	fill in the blank 8	fill in the blank 9	fill in the blank 10
Purchase orders	fill in the blank 11	fill in the blank 12	fill in the blank 13	fill in the blank 14	fill in the blank 15

Cost allocation:

	Power	General Factory	Purchasing	Shampoo	Conditioner
Direct costs	$fill in the blank 16	$fill in the blank 17	$fill in the blank 18	$fill in the blank 19	$fill in the blank 20
General Factory	fill in the blank 21	fill in the blank 22	fill in the blank 23	fill in the blank 24	fill in the blank 25
Purchasing	fill in the blank 26		fill in the blank 27	fill in the blank 28	fill in the blank 29
Power	fill in the blank 30			fill in the blank 31	fill in the blank 32
Total	$fill in the blank 33	$fill in the blank 34	$fill in the blank 35	$fill in the blank 36	$fill in the blank 37

2. Using machine hours, compute departmental overhead rates. (Round the overhead rates to the nearest cent.)

	Overhead Rates
Shampoo	$fill in the blank 38 per machine hour
Conditioner	$fill in the blank 39 per machine hour