Allardyce was surprisingly dismissed by Blackburn's new owners Venky's on Monday and he admits to still being 'confused' as to the reasons for his departure.
Reports have claimed a difference of opinion regarding January transfer targets and there are also suggestions that Venky's want to see a more entertaining style of football on show at Ewood Park.
Manchester United boss Ferguson was stunned by the news of Allardyce's exit and believes it 'confounds common sense'.
Ferguson told Sky Sports 1: "He phoned me at 3.10pm today saying 'can I have a cup of tea tonight?' because he was coming to the game. Then he phones me at half past four and says 'I've been sacked'.
"I've never heard of such a stupid decision in all my life, it's absolutely ridiculous. I don't know what they're doing up there, but deary me.
"It confounds common sense to be honest with you. Absolutely ridiculous.
"I wouldn't like to follow him!"
Allardyce's sacking comes just days after Fabio Capello had suggested he would be a front-runner to replace him as England coach after Euro 2012.
Richard Bevan, the chief executive of the LMA, said: "When new owners take over a club, sadly, the manager's position often hangs by a thread.
"To Sam's great misfortune this has now happened twice and, on both occasions, it has been extremely difficult to understand the thinking behind the dismissal.
"It is ironic that one minute Sam can be proposed as the next England manager and the next, he finds himself out of work."
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