Sequential Method

Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments:

	Support Departments		Producing Departments
	General Factory	Receiving	Assembly	Finishing
Direct overhead	$400,000	$150,000	$42,000	$71,000
Square footage		2,700	5,400	5,400
Number of receiving orders	300		1,680	1,020
Direct labor hours			25,000	40,000

The support departments are ranked in order of highest cost to lowest cost.

Required: 1. Allocate the costs of the support departments using the sequential method. (Use the rounded values for subsequent calculations. Round allocation ratios to four significant digits. Round allocated costs to the nearest dollar. If an amount is zero, enter "0".) Allocation ratios: Square footage Number of receiving orders Allocations: Direct overhead cost Allocate: General Factory Receiving Total General Factory General Factory 000 Receiving Receiving 100 Assembly Finishing Assembly LA Finishing 000 000 2. Using direct labor hours, compute departmental overhead rates. (Round to the nearest cent.) Assembly Finishing Overhead Rate per direct labor hour per direct labor hour