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Sequential Method Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments: Support Departments Producing Departments
Sequential Method Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments: Support Departments Producing Departments General Factory Receiving Assembly Finishing $400,000 $150,000 $42,000 $75,000 2,700 5,400 5,400 Direct overhead Square footage Number of receiving orders Direct labor hours 300 1,680 1,020 25,000 40,000 The support departments are ranked in order of highest cost to lowest cost. 1. Allocate the costs of the support departments using the sequential method. (Use the rounded values for subsequent calculations. Round allocation ratios to four significant digits. Round allocated costs to the nearest dollar. If an amount is zero, enter "0".) Allocation ratios: General Factory Receiving Assembly Finishing Square footage Number of receiving orders Allocations: General Factory Receiving Assembly Finishing Direct overhead cost Allocate: General Factory Receiving Total sl 2. Using direct labor hours, compute departmental overhead rates. (Round to the nearest cent.) Overhead Rate Assembly per direct labor hour Finishing per direct labor hour
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