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Sequential Method asmine Company manufactures both pesticide and liquid fertilizer, with each product manufactured in separate departments. Three support departments support the production departments: Power, General Factory, and Purchasing. Budgeted data on the five departments are as Support Departments Producing Departments Liquid Power $80,000 1,500 $312,000 $169,000 1,500 1,345 Factory Purchasing Pesticide Fertilizer $107,700 4,800 8,000 60 $78,800 4,200 24,000 120 Square feet Machine hours Purchase orders The company does not break overhead into fixed and variable components. The bases for allocation are power-machine hours; general factory- square feet; and purchasing-purchase orders. The 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 cost. Required: 1. Allocate the overhead costs to the producing departments using the sequential method. Carry out allocation ratios to four decimal places. Use these numbers for subsequent calculations. Round allocated costs to the nearest dollar. If an amount is zero, enter "O" Allocation ratiost 1,403 20 40 Power General Factory Purchasing Liquid Fertilizer 0.1250 V 0.3500 V 0.7500 v 0.6000 0.4000 0.2500 0.3000 0 Square feet Machine hours Purchase orders 0.1250 0 0.1000 V Cost allocation: Power General Factory Purchasing Liquid Fertilizer Check My Work Previous Next

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