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Reciprocal Method of Support Department Cost Allocation Chekov Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly.

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Reciprocal Method of Support Department Cost Allocation Chekov Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. The costs of the Human Resources Department are allocated on the basis of number of emplovees, and the costs of General factory are allocated on the basis of square footage. Now assume that Chekov 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. 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 for the total reciprocated costs of each support department. (Round reciprocated total costs to the nearest dollar.) 3. Using the rediprocal method, allocate the costs of the Human Resources and General Factory departments to the Fabricating and Asiembiy departments, Raund all allocated costs to the nearest doltar. If an amount is xero, enter " 0 ". Notei There may be a "ss" difference due to intermediate rounding. Solve for the totai reciprocated costs of each support department, (Round reciprocated total costs to the nearest dollar) 3. Using the reciptocal method, allocate the costs of the Human Resources and General factory departments to the Fabricating and Assembiy departments. Round all allocated costs to the nearest dellar. If an amount is zere, enter " 0 ". Notet There may be a " $1 " difference due to intermediate rounding

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