Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I still get wrong I dont know why? Sequential (Step) Method of Support Department Cost Allocation Chekov Company has two support departments, Human Resources and
I still get wrong I dont know why?
Sequential (Step) Method of Support Department Cost Allocation Chekov 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 $150,000 $360,000 $120.900 $86,000 Normal activity: Number of employees 60 45 80 1,500 Square footage 6,000 14,000 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 sequential method to allocate support department costs. The support departments are ranked in order of highest cost to lowest cost. Required: 1. Calculate the allocation ratios (rounded to four significant digits) for the four departments using the sequential method. If an amount is zero, enter "0". Use the rounded values for subsequent calculations. Proportion of Driver Used by Human Resources General Factory Fabricating Assembly Human Resources o 0.36 0.64 ol General Factory 0.0698 o 0.2791 0.6512 2. Using the sequential 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". Round your answers to the nearest dollar. Support Departments Producing Departments Human Resources General Factory Fabricating Assembly Direct costs 150,000 360,000 sl 120,900 86,000 Allocate: General Factory 25,128 -360,000 X 100,476 234,432 Human Resources -175,128 0 63,046 112,082 Total after allocation 0 0 x 284,422 432,514 Feedback Check My Work 1. The sequential method, as well as direct and reciprocal methods, allocates all support department costs to the producing departments. Click to test a different score overhead must equal post-allocation overhead. 2. The sequential (or step) method ranks support departments and allocates from top ranking to lower ranking. Some reciprocity is recognized. After allocation, zero costr: See Example 7.4Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started