Refer to the information for Quillen Company above. Now assume that Quillen uses the sequential method to allocate support department costs. S1 is allocated first, then S2.
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:
1. Calculate the cost assignment ratios to be used under the sequential method for S2, Cutting, and Sewing. Carry out your answers to four decimal places.
2. Allocate the overhead costs to the producing departments by using the sequential method.