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Sequential (Step) Method of Support Department Cost Allocation Vatron company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and
Sequential (Step) Method of Support Department Cost Allocation Vatron company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly Producing Departments Support Departments Human General Resources Factory $175,000 $300,000 Fabricating Assembly Direct costs $114,000 $90,000 Normal activity Number of employees 50 80 160 Square footage 1,200 5,200 13,000 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 Vatron 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 varten crounded to tour lipicant cigles) for the tour departments uning the sequential method Uran amount is 2000, enter "0". Use the rounded vahes for subsequent calculations Proportion of Driver Used by Human Resources General Factory Fabricating Assembly OX 0.33 X Human Resources General Factory 0.06LOX 0.2650 X 2. Using the sequential method, allocate the cost of the Human Resources and cinnat Factory departments to the Fabricating and Assembly departments if an amount Szeroentero Round your answers to the nearest do Check My Work Previous Square footage 1,200 5,200 13,000 esources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footagit. Now as maron Company uses the sequential method to allocate support department costs. The support departments are ranked in order of highest cost to lowest cost Required: Human Resources 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 Human Resources General Factory Fabricating Assembly 0.33 X 0 X General Factory 0.0615 X 0.2600 X 2. Using the sential method, allocate the conts of the Human Resources and General Factory departments to the Fabricating and Assembly departments. If an amour tas zero, enter*o". Round your answers to the nearest dollar Support Departments Producing Departments Human Resources General Factory Fabricating Assembly Directo 175,000 300,000 114,000 98,000 Mlocate General Pactory 13,540 X -300,000 80,400 201,0307 Human Resources -156,460 X 0 52.148 X 156,460 X Total after allocation 0 246,546 x 403,341 X
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