Refer to the data in Exercise 7.22. The support departments are ranked in order of highest cost to lowest cost.
In exercise Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments:

Required:
1. Allocate the costs of the support departments using the sequential method.
2. Using direct labor hours, compute departmental overhead rates.

Support DepartmentsProducing Departments Direct overhead Square footage Number of receiving orders Direct labor hours General Factory Receiving Assembly Finishing $160,000 $43,000 $74,000 5,400 1,020 25,000 40,000 S400,000 2,700 5,400 1,680 300