Chekov Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating...
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Chekov Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. Direct costs Normal activity: Required: Support Departments Human Resources $160,000 Human Resources General Factory Number of employees Square footage 14,000 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footage. Chekov Company uses the direct method of support department cost allocation. 1,500 General Factory $350,000 Human Resources Producing Departments 60 Fabricating Assembly $114,800 $94,000 45 6,000 1. Calculate the allocation ratios for the four departments using the direct method. If an amount is zero, enter "0". Round your answer to the nearest cent. Proportion of Driver Used by General Factory 80 Fabricating Assembly 2. Using the direct method, allocate the costs of the Human Resources and General Factory departments to the Fabricating and Assembly departments. If an amount is zero, enter "0". Chekov Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. Direct costs Normal activity: Required: Support Departments Human Resources $160,000 Human Resources General Factory Number of employees Square footage 14,000 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footage. Chekov Company uses the direct method of support department cost allocation. 1,500 General Factory $350,000 Human Resources Producing Departments 60 Fabricating Assembly $114,800 $94,000 45 6,000 1. Calculate the allocation ratios for the four departments using the direct method. If an amount is zero, enter "0". Round your answer to the nearest cent. Proportion of Driver Used by General Factory 80 Fabricating Assembly 2. Using the direct method, allocate the costs of the Human Resources and General Factory departments to the Fabricating and Assembly departments. If an amount is zero, enter "0".
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Cornerstones of Cost Management
ISBN: 978-1285751788
3rd edition
Authors: Don R. Hansen, Maryanne M. Mowen
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