Business, 21.02.2020 17:08 lowealiyah6755

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
Assume that Quillen uses the sequential method to allocate support department costs. S1 is allocated first, then S2.

Required:

Calculate the cost assignment ratios to be used under the sequential method for S2, Cutting, and Sewing. Enter your answers as decimal values, carried out to four decimal places, if necessary.

Allocation ratios for S1:

S2:
Cutting:
Sewing:
Allocation ratios for S2:

Cutting:
Sewing:

Answers: 3

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Quillen Company manufactures a product in a factory that has two producing departments, Cutting and...

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