Textbook Problem

Use the following information for Brief Exercises 4-34 and 4-35:

Sanjay Company manufactures a product in a factory that has two producing departments, Assembly and Painting, and two support departments, S1 and S2. The activity driver for S1 is square footage, and the activity driver for S2 is number of machine hours. The following data pertain to Sanjay:

Brief Exercises 4-35 (Appendix 4B) Sequential Method

Refer to the information for Sanjay Company on the previous page. Now assume that Sanjay uses the sequential method to allocate support department costs. S1 is allocated first, then S2.

Required:

1. 1. Calculate the cost assignment ratios to be used under the sequential method for S2, Assembly, and Painting. Carry out your answers to four decimal places.
2. 2. Allocate the overhead costs to the producing departments by using the sequential method.