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gnmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false eBook Calculator Reciprocal 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 Resources General Factory Fabricating Assembly Direct costs $170,000 $330,000 $114,800 $94,000 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. Now assume that Vairon Company uses the reciprocal method to allocate support department costs. Required: 1. Calculate the allocation ratios (rounded to four significant digits) for the four departments using the reciprocal method. If an amount is zero, enter "on. Use the rounded values for subsequer Proportion of Driver Used by Human Resources General Factory Fabricating Assembly Human Resources 0 0.1935 0.2581 0.5484 General Factory 0.05 OV 0.2850 0.6650 2. Develop a simultaneous equations system of total costs for the support departments. If required, round your answers to four decimal places. Use these numbers for subsequent calculations. If Human Resources $ (HR) 18,322.01550 X (GF) 170,000 $ General Factory (GF) 40,000 x + 25,000 X (HR) Solve for the total reciprocated costs of each support department. (Round reciprocated total costs to the nearest dollar.) Human Resources (HR) General Factory (GF) 3. Using the reciprocal method, allocate the costs of the Human Resources and General Factory departments to the Fabricating and Assembly departments. Round all allocated costs to the nearest del Support Departments Human Resources General Factory Producing Departments Fabricating Assembly 97,000 x $ 55,000 X Direct costs 159,600 X 181,200 x Allocate: Human Resources 710,400X 355,200 X 1,136,640 x 170,960 x General Factory 870,000 X 174,000 X 487,200 X 200,300 X Total after allocations 0 07 0 1,720,840 x $ 1,968,760 X Feed Tot sy Work 1. The reciprocal method, as well as direct and sequential methods, allocates all support department costs to the producing departments Check My Work All work saved BE