eciprocal 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	$140,000	$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.

Now assume that Valron Company uses the reciprocal method to allocate support department costs.

This is what need help with --

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 dollar. If an amount is zero, enter "0". Note: There may be a "$1" difference due to intermediate rounding. Support Departments Producing Departments Human Resources General Factory Fabricating Assembly Direct costs $ 140,000 340,000 114,200 V $ 95,000 Allocate: Human Resources -158,534 30,676 40,902 X 86,940 General Factory 18,534 -370,676 105,643 V 246,505 X Total after allocation 0 V $ 0 260,745 X $ 428,443 X