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Direct costs Normal activity: Support Departments Required: Human Resources $150,000 - 1,500 General Factory $360,000 Human Resources Number of employees Square footage The costs of
Direct costs Normal activity: Support Departments Required: Human Resources $150,000 - 1,500 General Factory $360,000 Human Resources Number of employees Square footage 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 Chekov Company uses the reciprocal method to allocate support department costs. Producing Departments 60 Fabricating $120,900 45 Assembly $86,000 6,000 80 14,000 1. Calculate the allocation ratios (rounded to four significant digits) for the four departments using the reciprocal method. If an amount is zero, enter "0". Use the rounded values for subsequent calculations. Proportion of Driver Used by General Factory Fabricating Assembly The costs of the Human Resources Department are allochted en the bavs of number of emplevees, and the costs of General Foctery are aliocated on the basis of square footage. Now anwme that Cheivev Company uses the reciprocal method to alocate support department costs. Required: for subsequeat calculations. 5olve for the total reciprocated costa of each support dapartment. (Round ceciprocated total costs to the nearest dollac) 4. General tactory (0, ) 1 to the nearest dollar. If an amount is zero, enter 07. Note: There may be a "$17 difference due to intermediate reunding. muxt equei pott-atigcation overhess
Direct costs Normal activity: Support Departments Required: Human Resources $150,000 - 1,500 General Factory $360,000 Human Resources Number of employees Square footage 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 Chekov Company uses the reciprocal method to allocate support department costs. Producing Departments 60 Fabricating $120,900 45 Assembly $86,000 6,000 80 14,000 1. Calculate the allocation ratios (rounded to four significant digits) for the four departments using the reciprocal method. If an amount is zero, enter "0". Use the rounded values for subsequent calculations. Proportion of Driver Used by General Factory Fabricating Assembly
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