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

Direct overhead $$400,000$ $$170,000$ $$45,000$ $$75,000$

Square footage $2,7005,4005,400$

Number of receiving orders $3001,6801,020$

Direct labor hours $25,00040,000$

The support departments are ranked in order of highest cost to lowest cost.

Required:

$1.$ 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 fill in the blank $1$

$0$

fill in the blank $2$

$0\mathrm{.}20$

fill in the blank $3$

$0\mathrm{.}40$

fill in the blank $4$

$0\mathrm{.}40$

Number of receiving orders fill in the blank $5$

fill in the blank $6$

$0$

fill in the blank $7$

fill in the blank $8$

Allocations:

General Factory Receiving Assembly Finishing

Direct overhead cost $fill in the blank $9$

$400,000$

$fill in the blank $10$

$170,000$

$fill in the blank $11$

$45,000$

$fill in the blank $12$

$75,000$

Allocate:

General Factory fill in the blank $13$

$-400,000$

fill in the blank $14$

fill in the blank $15$

fill in the blank $16$

Receiving fill in the blank $17$

$0$

fill in the blank $18$

fill in the blank $19$

fill in the blank $20$

Total $fill in the blank $21$

$0$

$fill in the blank $22$

$0$

$fill in the blank $23$

$fill in the blank $24$

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

Overhead Rate

Assembly fill in the blank $25$

per direct labor hour

Finishing fill in the blank $26$

per direct labor hour