Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1 question 2 parts Direct Method of Support Department Cost Allocation Valron Company has two support departments, Human Resources and General Factory, and two producing

1 question 2 parts image text in transcribed
image text in transcribed
Direct Method of Support Department Cost Allocation Valron Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. Support Departments Producing Departments Human General Resources Factory Fabricating Assembly Direct costs $170,000 $340,000 $114,200 $95,000 Normal activity: Number of employees 60 80 170 Square footage 1,000 5,700 13,300 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. Vatron Company uses the direct method of support department cost allocation. Required: 1. Calculate the allocation ratios for the four departments using the direct method. If an amount is zero, enter "o". Round your answer to the nearest cent. Proportion of Driver Used by Human Resources General Factory Fabricating Assembly Human Resources General Factory 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" Support Departments Producing Departments Human Resources General Factory Fabricating Assembly Direct costs Allocate: Human Resources General Factory Total after allocation

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Construction Auditing Planning Implementation Use

Authors: Peter Wotschke, Gregor Kindermann

1st Edition

3658388404, 978-3658388409

More Books

Students also viewed these Accounting questions

Question

Discuss the ethics of concealed observation.

Answered: 1 week ago

Question

1. Who will you assemble on the team?

Answered: 1 week ago