Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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 Support Departments Producing Departments Human General Factory Fabricating Assembly Resources Direct costs $185,000 $330,000 $114,700 $95,000 Normal activity: Number of employees 50 80 150 Square footage 1,300 5,600 13,100 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: 1. Calculate the allocation ratios (rounded to four significant digits) for the four departments using the sequential method. If an amount is zero, enter "o". Use the rounded values for subsequent calculations. Proportion of Driver Used by General Factory Fabricating Assembly Human Resources 0 0 Human Resources 0 General Factory 2. 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 D". Round your answers to the nearest dollar 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: 1. Calculate the allocation ratios (rounded to four significant digits) for the four departments using the sequential method. I an amount is zero, enter "O". Use the rounded values for subsequent calculations Proportion of Driver Used by General Factory Fabricating Human Resources Assembly Human Resources General Factory 0 an amount 2. Using the sequential method, allocate the costs of the Human Resources and General Factory departments to the Fabricating and Assembly departments. Is zero, enter"0" Round your answers to the nearest dollar Producing Departments Support Departments Human Resources General Factory Fabricating Assembly 185,000 330,000 114,700 95,000 Direct costs Allocate: 330,000 General Factory 0 Human Resources 0 0 O Total after allocation

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Analytical Corporate Finance

Authors: Angelo Corelli

1st Edition

3319395483, 9783319395487

More Books

Students also viewed these Accounting questions

Question

=+How can I use it in a new way?

Answered: 1 week ago

Question

=+2. Do they use a similar tone of voice and point of view?

Answered: 1 week ago