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Redprocal Method of Support Department Cost Allocation Valron Company has to support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly
Redprocal Method of Support Department Cost Allocation Valron Company has to support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly Support Departments Producing Departments General Factory Fabricating Assembly Resources $ $120.000 Direct $44,01001 Normal activity Number of employees GO 80 170 Square footage 1.000 5,700 13,300 the 1st of the human scurtes Depol on the basis of member of press the story related on the less of gen. Now asume that Varan Company was the reciprocal method to allocate support department costs. Required: 1. Calculate the allocation ratios (rounded to four nificant digits) for the four departments using the reciprocal method. Dan amount is zero, enter. Use the rounded values for subsequent calculations Proportion of Driver Used by Glory abricating Human Resources 0 0.2 x 0.4 X 0.40 X Gorral Factory 0.1 X 0.56 X 0.34 x 2. Develop a imultaneous 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 al decimal places, except the answers computed in requirement Human Resources $ 367,939 X (GF) 393,OGIX $ 40,000 x Gereral Factory (GF) 25,000 x (HR) Salve for the total reciprocated costs of each support department (Round reciprocated to al costs to the nearest dollar) II (11 General Factory (GF) 3. Using the reciprocal method, alocate the cost of the Human Resources and General Factory departments to the Fabricating and Assembly departments. Round all allocated cocts to the nearest dollar. an amount is zero, cnter. Note: There may be al difference duc to Intermediate rounding Support Departments Producing Departments Human Resource General Factory Fabricating Assembly Dirt CONG 1.59,600 X 181,200 x 97,00 X $ 55,000 X Allocate: 711,400 X 355,200 -355,200 X 1,1.1,10 x 1.1 120.9 x General Factory 870,000 X 174,000 x 487,200 X 203,800 X 21 lullattu 1,120,11-10 X 1,461,11 X Redprocal Method of Support Department Cost Allocation Valron Company has to support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly Support Departments Producing Departments General Factory Fabricating Assembly Resources $ $120.000 Direct $44,01001 Normal activity Number of employees GO 80 170 Square footage 1.000 5,700 13,300 the 1st of the human scurtes Depol on the basis of member of press the story related on the less of gen. Now asume that Varan Company was the reciprocal method to allocate support department costs. Required: 1. Calculate the allocation ratios (rounded to four nificant digits) for the four departments using the reciprocal method. Dan amount is zero, enter. Use the rounded values for subsequent calculations Proportion of Driver Used by Glory abricating Human Resources 0 0.2 x 0.4 X 0.40 X Gorral Factory 0.1 X 0.56 X 0.34 x 2. Develop a imultaneous 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 al decimal places, except the answers computed in requirement Human Resources $ 367,939 X (GF) 393,OGIX $ 40,000 x Gereral Factory (GF) 25,000 x (HR) Salve for the total reciprocated costs of each support department (Round reciprocated to al costs to the nearest dollar) II (11 General Factory (GF) 3. Using the reciprocal method, alocate the cost of the Human Resources and General Factory departments to the Fabricating and Assembly departments. Round all allocated cocts to the nearest dollar. an amount is zero, cnter. Note: There may be al difference duc to Intermediate rounding Support Departments Producing Departments Human Resource General Factory Fabricating Assembly Dirt CONG 1.59,600 X 181,200 x 97,00 X $ 55,000 X Allocate: 711,400 X 355,200 -355,200 X 1,1.1,10 x 1.1 120.9 x General Factory 870,000 X 174,000 x 487,200 X 203,800 X 21 lullattu 1,120,11-10 X 1,461,11 X
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