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Reciprocal Method of 5 upport Department Cost Alocation Chekov Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and

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Reciprocal Method of 5 upport Department Cost Alocation Chekov Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly, The costs of the Human Rescurtes Department are allocated on the basis of number of employees, and the costs of General Factory are allocated an the basis of square footage. Now assume that Chekov Company uses the reciprocal method to allocate support department costs. Required: 1. Calculate the allocation retios (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 subseguent calculations. 2. Deveiop a sumultaneous equatiens oystem of total costs for the support departments. If required, round your answers to four decimal places. Use these numbers for subsequent calculations. If required, round all other intermediate calculations to six decimal places, except the answers computed in requirement 1 . 1. Caliculate 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. 2. Develop a simultaneous equations system of total costs for the support departments. If required, round your answers to four decimal places, Use these numbers for subsequent calculations. If required, round all other intermediate calculations to six decimal places, except the answers computed in requirement 1. Solve far the total reciprocated costs of each wupport department. (Round reciprocated total costs to the nearest dollar.) 3. Using the reciprocal method, allocate the costs of the Kuman Resources and General Factory departunents to the fabricating and Assembly departments. Round all allocated costs to the nearest doliar, If an amount is zero, enter "0", Notes There may be a "s1" difference due to intermediate rounding

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