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 $500,000 $150,000 $45,000 $75,000 Square footage — 2,700 5,400 5,400 Number of receiving orders 300 — 1,680 1,020 Direct labor hours — — 25,000 40,000 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 fill in the blank 2 fill in the blank 3 fill in the blank 4 Number of receiving orders fill in the blank 5 fill in the blank 6 fill in the blank 7 fill in the blank 8 Allocations: General Factory Receiving Assembly Finishing Direct overhead cost $fill in the blank 9 $fill in the blank 10 $fill in the blank 11 $fill in the blank 12 Allocate: General Factory fill in the blank 13 fill in the blank 14 fill in the blank 15 fill in the blank 16 Receiving fill in the blank 17 fill in the blank 18 fill in the blank 19 fill in the blank 20 Total $fill in the blank 21 $fill in the blank 22 $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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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
	General Factory	Receiving	Assembly	Finishing
Direct overhead	$500,000	$150,000	$45,000	$75,000
Square footage	—	2,700	5,400	5,400
Number of receiving orders	300	—	1,680	1,020
Direct labor hours	—	—	25,000	40,000

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	fill in the blank 2	fill in the blank 3	fill in the blank 4
Number of receiving orders	fill in the blank 5	fill in the blank 6	fill in the blank 7	fill in the blank 8

Allocations:

	General Factory	Receiving	Assembly	Finishing
Direct overhead cost	$fill in the blank 9	$fill in the blank 10	$fill in the blank 11	$fill in the blank 12
Allocate:
General Factory	fill in the blank 13	fill in the blank 14	fill in the blank 15	fill in the blank 16
Receiving	fill in the blank 17	fill in the blank 18	fill in the blank 19	fill in the blank 20
Total	$fill in the blank 21	$fill in the blank 22	$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

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