(Appendix 48) Sequential Method Sanjay Company manufactures a product in a factory that has two producing departments, Assembly and Painting, and two support departments, 51 and 52. The activity driver for S1 is square footage, and the activity driver for $2 is number of machine hours. The following data pertain to Sanjay: Support Departments 52 $200,000 $140,000 51 Direct costs Normal activity: Square footage Machine hours Producing Departments Assembly Painting $115,000 $96,000 500 1,875 625 337 3,200 12,000 Now assume that Sanjay uses the sequential method to allocate support department costs. S1 is allocated first, then $2. Required: 1. Calculate the cost assignment ratios to be used under the sequential method for $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. 52 $1 0.75 52 Assembly Painting 0.75 X 0.25 0.2 0.8 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"). 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 blam enter zero ("0"). Support Departments Producing Departments Allocate: $1 Direct costs 200,000 52 Assembly 140,000 115,000 51 -200,000 150,000 X 52 Total -140,000 X 28,000 X 293,000 X Feedback Painting: 96,000