alculate the cost assignment ratios to be used under the direct method for Departments S1 and S2. (Note: Each support department will have two ratios—one for Assembly and the other for Painting.) Round your answers to two decimal places. Assembly Painting S1 fill in the blank 1 fill in the blank 2 S2 fill in the blank 3 fill in the blank 4 2. Allocate the support department costs to the producing departments by using the direct method. Use a minus sign to indicate a subtraction. For t
(Appendix 4B) Assigning Support Department Costs by Using the Direct Method
Sanjay Company manufactures a product in a factory that has two producing departments, Assembly and Painting, and two support departments, S1 and S2. The activity driver for S1 is square footage, and the activity driver for S2 is number of machine hours. The following data pertain to Sanjay:
| Support Departments | Producing Departments | ||||
| S1 | S2 | Assembly | Painting | ||
| Direct costs | $200,000 | $140,000 | $115,000 | $96,000 | |
| Normal activity: | |||||
| Square footage | — | 500 | 1,875 | 625 | |
| Machine hours | 337 | — | 3,200 | 12,800 |
Required:
1. Calculate the cost assignment ratios to be used under the direct method for Departments S1 and S2. (Note: Each support department will have two ratios—one for Assembly and the other for Painting.) Round your answers to two decimal places.
| Assembly | Painting | |
| S1 | fill in the blank 1 | fill in the blank 2 |
| S2 | fill in the blank 3 | fill in the blank 4 |
2. Allocate the support department costs to the producing departments by using the direct method. Use a minus sign to indicate a subtraction. For those boxes in which no entry is required, leave the box blank or enter zero ("0").
| Support Departments | Producing Departments | ||||||
| Allocate: | S1 | S2 | Assembly | Painting | |||
| Direct costs | $fill in the blank 5 | $fill in the blank 6 | $fill in the blank 7 | $fill in the blank 8 | |||
| S1 | fill in the blank 9 | fill in the blank 10 | fill in the blank 11 | fill in the blank 12 | |||
| S2 | fill in the blank 13 | fill in the blank 14 | fill in the blank 15 | fill in the blank 16 | |||
| Total | $fill in the blank 17 | $fill in the blank 18 | $fill in the blank 19 | $fill in the blank 20 |
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