CH8-Q3-A)

REQUIRED:

Allocate support costs using the direct method. (Round percentages to 4 decimal places, e.g. 15.2574% and other answers to 0 decimal places, e.g. 125. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Vaughn Company has two service departments (personnel and financial) that provide services for one another as well as for two production departments, assembly and finishing. Data for the month follow: Personnel Financial Assembly Finishing Employees 5 8 18 14 Payroll $14,600 $15,000 $30,100 $28,500 Personnel department costs were $81,800, and financial department costs were $39,000. Vaughn uses employees as the allocation base for personnel department costs and payroll costs for financial department costs Operating Departments Assembly Finishing Total % % % $ $ $ % % % $ $