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 Resources	General Factory		Fabricating	Assembly
Direct costs	$180,000	$320,000		$114,300	$95,000
Normal activity:
Number of employees		50		80	160
Square footage	1,300			5,000	13,700

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.

	Proportion of Driver Used by
	Human Resources	General Factory	Fabricating	Assembly
Human Resources	fill in the blank 1	fill in the blank 2	fill in the blank 3	fill in the blank 4
General Factory	fill in the blank 5	fill in the blank 6	fill in the blank 7	fill in the blank 8

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.

	Support Departments			Producing Departments
	Human Resources	General Factory		Fabricating	Assembly
Direct costs	$fill in the blank 9	$fill in the blank 10		$fill in the blank 11	$fill in the blank 12
Allocate:
General Factory	fill in the blank 13	fill in the blank 14		fill in the blank 15	fill in the blank 16
Human Resources	fill in the blank 17	fill in the blank 18		fill in the blank 19	fill in the blank 20
Total after allocation	$fill in the blank 21	$fill in the blank 22		$fill in the blank 23	$fill in the blank 24