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. Direct costs Normal activity: Number of employees Square footage Human Resources Support Departments Human Resources Direct costs $185,000 Allocate: 1,200 General Factory General Factory $360,000 Human Resources 0 50 Producing Departments 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: Fabricating Assembly 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. Proportion of Driver Used by General Factory Human Resources $114,900 185,000 80 Support Departments 5,800 0 0 S 360,000 $91,000 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"0". Round your answers to the nearest dollar. Producing Departments General Factory 170 13,200 -360,000 Fabricating 0.3200 Assembly Fabricating 114,900 0.6800 Assembly 91,000 Previous Next

Sequertial (step) Method of Support Department Cost Mlocation. Valron Conspany has two support departments, Human Resources and General Factory, and two producing departments, fabricating ard Assembly. Required: Resources Departnent are allocated an the basis of number of employees, and the costs of General Factory are allocated on the bask of square foctage. Now assume that Valron. Camipary 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 alocation rotios (evunded to four significant digas) for the foof departments using the sepuential method. If an amount is aera, enter "o", Use the rounided values for motsequent calculations. 2. Using Die sequential method, allocate the costs of the Hivitan Aesources and General factory dopartments to the Fabricating and Assembly departments. If an amount is zero. eriter'o". Alsuna yout ansmers to the nearest doller. Sequertial (step) Method of Support Department Cost Mlocation. Valron Conspany has two support departments, Human Resources and General Factory, and two producing departments, fabricating ard Assembly. Required: Resources Departnent are allocated an the basis of number of employees, and the costs of General Factory are allocated on the bask of square foctage. Now assume that Valron. Camipary 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 alocation rotios (evunded to four significant digas) for the foof departments using the sepuential method. If an amount is aera, enter "o", Use the rounided values for motsequent calculations. 2. Using Die sequential method, allocate the costs of the Hivitan Aesources and General factory dopartments to the Fabricating and Assembly departments. If an amount is zero. eriter'o". Alsuna yout ansmers to the nearest doller