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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, Fabricating and

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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, Fabricating and Assembly. 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 " 0 ". Use the rounded values for subsequent calculations. 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" 0. Round your answers to the nearest dollar. 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 zero, enter " 0, Use the rounded values for subsequent calculations. 2. Using the sequential method, allocate the costs of the Human Resources and General Factory departments to the Fabricating and Asser departments. If an amount is zero, enter" 0 ". Round your answers to the nearest dollar. Fendback v Crock My Work 1. The sequential method, as well as direct and reciprocal methods, allocates all support department costs to the producing departments. 2. The sequential (or step) method ranks support departments and allocates from top ranking to lower ranking. Some reciprocity is recognized. After allocation, zero cost remains in the support departments. Pre-allocation total overhead must equal post-allocation overhead

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