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Comparison of Methods of Allocation Duweynie Pottery, Inc., is divided into two operating divisions: Pottery and Retail. The company allocates Power and General Factory department costs to each operating division. Power costs are allocated on the basis of the number of machine hours and general factory costs on the basis of square footage. No effort is made to separate fixed and variable costs; however, only budgeted costs are allocated. Allocations for the coming year are based on the following data: Use the rounded values for subsequent calculations. Support Departments Operating Divisions Power General Factory Pottery Retail Overhead costs $159,600 $162,000 $99,000 $57,000 Machine hours 2,000 2,500 7,000 3,000 Square footage 2,500 1,700 4,000 6,000 Round all allocation ratios to four significant digits. Round all allocated amounts to the nearest dollar. Required: 1. Allocate the support service costs using the direct method. Note: Input to two decimal places. Allocation Ratios Pottery Retail Proportion of machine hours 0.70 0.30 Proportion of square footage 0.40 0.60 Cost Allocations Pottery Retail Power 111,720 $ 47,880 General Factory 64,800 97,200 Direct costs 99,000 57,000 275,520 $ 202,080 2. Allocate the support service costs using the sequential method. The support departments are ranked in order of highest cost to lowest cost. Note: If an amount is zero, enter "0". Input to two decimal places. Allocation Ratios Power General Factory Pottery Retail Machine hours o 0.7 0.3 Square footage 0.2 o 0.32 0.48 Cost Allocations Power General Factory Pottery Retail Direct costs 159,600 $ 162,000 99,000 57,000 General Factory X X Power Cost after allocation 0 $ 0 $ 3. Allocate the support service costs using the reciprocal method. Note: If an amount is zero, enter "0". Input to two decimal places. Allocation Ratios Power General Factory Pottery Retail Machine hours Square footage Cost Allocations Pottery Retail General Factory Power Direct costs Cost after allocation