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. The costs of the Haman Resources Department are aliocated on the basis of number of employees, and the costs of General Factory are aflocated 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 significarit-digits) for the four departments using the reciprocal inethod. If an amount is zero, enter "o". Use the rounded values for subsequetht calculations. requirement :. Wo: use the rounded values or subsequentic calculations. 2. Develop a simultaneous equations system of total costs for the support departments. If required, round your answers to rour decimal places, Use these numbers for subsequent calculations. If required, round all other intermediate calculations to six decimal places, except the computed in requirement 1. Solve for the total reciprocated costs of each support departinent. (Round reciprocated total costs to the nearest dollar.) 3. USing the reciprozal method, allocate the costs of the Human Rescurces and General Factory departments to the Fabricating and Assembly departments. Round all allocated costs to the nearest dollat. If an amount is zero, enter " 0". Note: There inay be a "s1" dinference due to intermediate founding. 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. The costs of the Haman Resources Department are aliocated on the basis of number of employees, and the costs of General Factory are aflocated 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 significarit-digits) for the four departments using the reciprocal inethod. If an amount is zero, enter "o". Use the rounded values for subsequetht calculations. requirement :. Wo: use the rounded values or subsequentic calculations. 2. Develop a simultaneous equations system of total costs for the support departments. If required, round your answers to rour decimal places, Use these numbers for subsequent calculations. If required, round all other intermediate calculations to six decimal places, except the computed in requirement 1. Solve for the total reciprocated costs of each support departinent. (Round reciprocated total costs to the nearest dollar.) 3. USing the reciprozal method, allocate the costs of the Human Rescurces and General Factory departments to the Fabricating and Assembly departments. Round all allocated costs to the nearest dollat. If an amount is zero, enter " 0". Note: There inay be a "s1" dinference due to intermediate founding
