Sequential MethodBelami Company manufactures shampoo and hair conditioner, with each product manufactured in separate departments. Three support departmerdepartments are as follows:OverheadSquare feetMachine hoursPurchase ordersRequired:Allocation ratios:Square feetMachine hoursPurchase ordersCost allocation:Direct costsGeneral FactoryPurchasingPowerSupport DepartmentsTotalPowerCheck My Work$94,0003,00020GeneralFactory$430,000The company does not break overhead into fixed and variable components. The bases for allocation are power-machine hours; general factory-scThe company has decided to use the sequential method of allocation instead of the direct method. The support departments are ranked in order of1. Allocate the overhead costs to the producing departments using the sequential method. Carry out allocation ratios to four decimal places. Use thzero, enter "0".Power0.1250 ✔Power1,40300.1000-40danastoProducing DepartmentsPurchasing Shampoo Conditioner$150,000$146,000$170,0003,0008,4001,34524,0007General Factory0✔0 ✓9,6008,000060General Factory120PurchasingPurchasingShampooShampooConditionerConditioner Machine hours1,40324,0003204060The company does not break overhead to fixed and variable components. The bases for allocation are power-machine hours; general factory-square feet, and purchasing-purchase orderThe 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 costPurchase orders1. Alcate the everal costs to the producing departments using the sential method Carry out azero, enter"8"Allocation ratioSquare feetMachine hoursPurchase ordersCost allocationDecGener FactoryPurchasingPowerYoShamposCondPower0.1250Feedack0.1000General Factory•✓DVGeneral Factoryper machine hourper me hourPurchasing ShampoPurchasing2. Using machine hours, compute departmental overhead rates (Round the overhead rates to the nearest cent.)Overhead Rates2. Tatal productos de cost/fal machine hours by destShapefour decimal places. Use these numbers for subsequent calculations. Round allocated costs to the nearest dollar. If an amount isConditionerNoha-numeric input fieldConditionerCheck My Work1.Cat are perfumed in stap down fashi, nga predetermined ang preds Starting with the top ranking department costs are alocated to the other support and producing departments but never back to ate departments

Name: Sequential MethodBelami Company manufactures shampoo and hair conditi
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Description: Sequential MethodBelami Company manufactures shampoo and hair conditioner, with each product manufactured in separate departments. Three support departmerdepartments are as follows:OverheadSquare feetMachine hoursPurchase ordersRequired:Allocation r

The correct overhead allocation is required to find the correct cost of production of products. The…

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Accounting

Sequential Method Belami Company manufactures shampoo and hair conditioner, with each product manufactured in separate departments. Three support departmen departments are as follows: Overhead Square feet Machine hours Purchase orders Support Departments Allocation ratios: Power Purchasing Shampoo $150,000 $146,000 3,000 9,600 8,400 8,000 24,000 60 120 The company does not break overhead into fixed and variable components. The bases for allocation are power-machine hours; general factory-se The company has decided to use the sequential method of allocation instead of the direct method. The support departments are ranked in order of Required: 1. Allocate the overhead costs to the producing departments using the sequential method. Carry out allocation ratios to four decimal places. Use the zero, enter "0". $94,000 3,000 General Factory $430,000 20 Power 1,403 Producing Departments 40 1,345 7 General Factory Conditioner $170,000 Purchasing Shampoo Conditioner

Sequential Method Belami Company manufactures shampoo and hair conditioner, with each product manufactured in separate departments. Three support departmen departments are as follows: Overhead Square feet Machine hours Purchase orders Support Departments Allocation ratios: Power Purchasing Shampoo $150,000 $146,000 3,000 9,600 8,400 8,000 24,000 60 120 The company does not break overhead into fixed and variable components. The bases for allocation are power-machine hours; general factory-se The company has decided to use the sequential method of allocation instead of the direct method. The support departments are ranked in order of Required: 1. Allocate the overhead costs to the producing departments using the sequential method. Carry out allocation ratios to four decimal places. Use the zero, enter "0". $94,000 3,000 General Factory $430,000 20 Power 1,403 Producing Departments 40 1,345 7 General Factory Conditioner $170,000 Purchasing Shampoo Conditioner

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Show Me How Support department cost allocation- Martay Creations produces winter scarves. The scarves are produced in the Cutting and Sewing departments. The Maintenance and Security departments support these production departments, and allocate costs based on machine hours and square feet, respectively. Information about each department is provided in the following table: Department Maintenance Department Security Department Cutting Department Sewing Department Total Cost Number of Employees $2,200 5 4,500 3 21,200 21 24,900 19 Machine Hours 40 Square Feet 600 0 500 3,600 2,400 5,400 3,000 Using the sequential method and allocating the support department with the highest costs first, allocate all support department costs to the production departments. Then compute the total cost of each production department. Cutting Department Sewing Department Production departments' total costs $ D
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Franklin Company produces commercial gardening equipment. Since production is highly automated, the company allocates its overhead costs to product lines using activity-based costing. The costs and cost drivers associated with the four overhead activity cost pools follow: Cost Cost driver Req A and B Unit Level $ 62,400 2,400 labor hours Req C Allocated overhead Direct cost Total cost per unit Desired profit Sales price Production of 710 sets of cutting shears, one of the company's 20 products, took 170 labor hours and 6 setups and consumed 15 percent of the product-sustaining activities. Complete this question by entering your answers in the tabs below. Required a. Had the company used labor hours as a companywide allocation base, how much overhead would it have allocated to the cutting shears? b. How much overhead is allocated to the cutting shears using activity-based costing? c. Compute the overhead cost per unit for cutting shears first using activity-based costing and then using…
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