mer eBook Print item 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 $150,000 $340,000 $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 Valron 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 O". Use the rounded values for subsequent calculations Proportion of Driver Used by Human Resous General Factory Fabricating Assembly Required: 1. Calculate the allocation ratios crounded to four significant digits) for the four departments using the reciprocal methodontienter "O". Use the rounded values for subsequent calculations. Proportion of Driver Used by Human Resources General Factory Fabricating Assembly Human Resources 0 0.1935 0.2561 0.5404 General Factory 0.05 0.2850 0.6650 2. Develop a simultaneous equations system of total costs for the support departments if required, round your answers to four decinal places these numbers for subsequent calculations. If required, round all other intermediate calculations to six decimal places, except the newer computed in requirement 1. - + Human Resources (HR) 150,000 0.00 General Factory (OF) 340,000 0.1935 Solve for the total reciprocated costs of each support department (Round reciprocated total costs to the nearest dollar) Human Resources (HR) 161,623 General Factory (6) 172,630 3. Using the reciprocal method, alocate the cost of the Human Resources and General Factory deatments to the fabricating with departments Round all located costs to the nearest dollar. If an amount interno. Noter There may difference due to inte rounding C + Human Resources (HR) 150,000 0.05 (GF) General Factory (GE) 340,000 0.1935) CHR) Solve for the total reciprocated costs of each support department. (Round reciprocated total costs to the nearest dollar) Human Resources (HR) 168,623 General Factory (GF) 372,630 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 To Note: There may be a difference due to intermediate rounding Support Departments Producing Departments Human Resources General Factory Fabricating Assembly Direct costs 150,000 140,000 114,300 94,000 Allocate: Human Resources - 168,623 32,630 General Factory 18,623 -372.630 Total after allocation 0 0 Check My Workmore Check My Workwearing Next