Question
Question Content Area Direct Method of Support Department Cost Allocation Valron Company has two support departments, Human Resources and General Factory, and two producing departments,
Question Content Area
Direct 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 DepartmentsProducing DepartmentsHuman ResourcesGeneral FactoryFabricatingAssemblyDirect costs$170,000$330,000$114,200$95,000Normal activity:Number of employees6080170Square footage1,0005,70013,300The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footage. Valron Company uses the direct method of support department cost allocation.
Required:
1. Calculate the allocation ratios for the four departments using the direct method. If an amount is zero, enter "0". Round your answer to the nearest cent.
Proportion of Driver Used byHuman ResourcesGeneral FactoryFabricatingAssemblyHuman Resourcesfill in the blank 1fill in the blank 2fill in the blank 3fill in the blank 4General Factoryfill in the blank 5fill in the blank 6fill in the blank 7fill in the blank 82. Using the direct method, allocate the costs of the Human Resources and General Factory departments to the Fabricating and Assembly departments. If an amount is zero, enter "0".
Support DepartmentsProducing DepartmentsHuman ResourcesGeneral FactoryFabricatingAssemblyDirect costs$fill in the blank 9$fill in the blank 10$fill in the blank 11$fill in the blank 12Allocate:Human Resourcesfill in the blank 13fill in the blank 14fill in the blank 15fill in the blank 16General Factoryfill in the blank 17fill in the blank 18fill in the blank 19fill in the blank 20Total after allocation$fill in the blank 21$fill in the blank 22$fill in the blank 23$fill in the blank 24Step by Step Solution
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