Appendix $4$B$)$ Sequential Method

Sanjay Company manufactures a product in a factory that has two producing departments, Assembly and Painting, and two support departments, S$1$ and S$2.$ The activity driver for S$1$ is square footage, and the activity driver for S$2$ is number of machine hours. The following data pertain to Sanjay:

Line Item Description Support

Departments

S$1$ Support

Departments

S$2$ Producing

Departments

Assembly Producing

Departments

Painting

Direct costs $$200,000$ $$140,000$ $$115,000$ $$96,000$

Normal activity:

Square footage $5001,875625$

Machine hours $3373,20012,800$

Now assume that Sanjay uses the sequential method to allocate support department costs. S$1$ is allocated first, then S$2.$

Required:

Download Excel spreadsheet

$1.$ Calculate the cost assignment ratios to be used under the sequential method for S$2,$ Assembly, and Painting. $($Note: Each support department will have two ratios$$one for Assembly and the other for Painting.$)$ Round your answers to four decimal places.

Line Item Description S$2$ Assembly Painting

S$1$

fill in the blank $1$

fill in the blank $2$

fill in the blank $3$

S$2$

fill in the blank $4$

fill in the blank $5$

$2.$ Allocate the overhead costs to the producing departments by using the sequential 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 $("0").$

Allocate: Support

Departments

S$1$ Support

Departments

S$2$ Producing

Departments

Assembly Producing

Departments

Painting

Direct costs $

fill in the blank $6$

$

fill in the blank $7$

$

fill in the blank $8$

$

fill in the blank $9$

S$1$

fill in the blank $10$

fill in the blank $11$

fill in the blank $12$

fill in the blank $13$

S$2$

fill in the blank $14$

fill in the blank $15$

fill in the blank $16$

fill in the blank $17$

Total $

fill in the blank $18$

$

fill in the blank $19$

$

fill in the blank $20$

$

fill in the blank $21$