TValron Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly.

The costs of the Human 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 reciprocal method to allocate support department costs.

Required:

Calculate the allocation ratios $($rounded to four significant digits$)$ for the four departments using the reciprocal method. If an amount is zero, enter $"0".$ Use the rounded values for subsequent calculations.

Proportion of Driver Used by

Solve for the total reciprocated costs of each support department. $($Round reciprocated total costs to the nearest dollar.$)$

Human Resources $($HR$)$ :

General Factory $($GF$)$

$he company does not break overhead into fixed and variable components. The bases for allocation are power$-$machine hours; general factory$-$square feet; and purchasing$-$purchase orders.

Required:

Cost assignment:

Using machine hours, compute departmental overhead rates. $($Round the overhead rates to the nearest cent.$)$

Departmental overhead rates

per machine hour