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Sequential ( Step ) Method of Support Department Cost Allocation Valron Company has two support departments, Human Resources and General Factory, and two producing departments,
Sequential Step Method of Support Department Cost Allocation
Valron Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly.
tableSupport Departments,,Producing DepartmentstableHumanResourcestableGeneralFactoryFabricating,AssemblyDirect costs,$$$$Normal activity:,Number of employees,
Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footage.
Now assume that Valron Company uses the sequential method to allocate support department costs. The support departments are ranked in order of highest cost to lowest cost.
Required:
Calculate the allocation ratios rounded to four significant digits for the four departments using the sequential method. If an amount is zero, enter Use the rounded values for subsequent calculations.
Proportion of Driver Used by
Human Resources
General Factory
tableHuman Resources,General Factory,Fabricating,Assemblyxxxxx
Using the sequential method, allocate the costs of the Human Resources and General Factory departments to the Fabricating and Assembly departments. If an amount is zero, enter" Round your answers to the nearest dollar.
tableDirect costs,Support Departments,Producing DepartmentsHuman Resources,General Factory,Fabricating,Assembly$$$$
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