(Appendix 4B) Assigning Support Department Costs by Using the Direct Method Quillen Company manufactures a product in a factory that has two producing departments, Cutting and Sewing, and two support departments, S1 and S2 The activity driver for S1 is number of employees, and the activity driver for S2 is number of maintenance hours The following data pertain to Quillen Support Departments Producing Departments S1 S2 Cutting Sewing Direct costs $180,000 $150,000 $122,000 $90,500 Normal activity Number of employees 30 63 147 Maintenance hours 1,200 16,000 4,000 Required 1 Calculate the cost assignment ratios to be used under the direct method for Departments S1 and S2 ( Note Each support department will have two ratiosone for Cutting and the other for Sewing ) Enter your answers as decimal values S1 S2 Cutting 0 3 fill in the blank 2 Sewing fill in the blank 3 0 2

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Question: (Appendix 4B) Assigning Support Department Costs by Using the Direct Method Quillen Company manufactures a product in a factory that has two producing departments, Cutting

(Appendix 4B) Assigning Support Department Costs by Using the Direct Method

Quillen Company manufactures a product in a factory that has two producing departments, Cutting and Sewing, and two support departments, S1 and S2. The activity driver for S1 is number of employees, and the activity driver for S2 is number of maintenance hours. The following data pertain to Quillen:

	Support Departments		Producing Departments
	S1	S2		Cutting	Sewing
Direct costs	$180,000	$150,000		$122,000	$90,500
Normal activity:
Number of employees		30		63	147
Maintenance hours	1,200			16,000	4,000

Required:

1. Calculate the cost assignment ratios to be used under the direct method for Departments S1 and S2. (Note: Each support department will have two ratiosone for Cutting and the other for Sewing.) Enter your answers as decimal values.

	S1	S2
Cutting	0.3	fill in the blank 2
Sewing	fill in the blank 3	0.2

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