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Vaughn Company has two service departments (personnel and financial) that provide services for one another as well as for two production departments, assembly and


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Vaughn Company has two service departments (personnel and financial) that provide services for one another as well as for two production departments, assembly and finishing. Data for the month follow: Personnel Financial Assembly Finishing Employees 5 8 18 14 Payroll $14,600 $15,000 $30,100 $28,500 Personnel department costs were $81,800, and financial department costs were $39,000. Vaughn uses employees as the allocation base for personnel department costs and payroll costs for financial department costs REQUIRED: Allocate support costs using the direct method. (Round percentages to 4 decimal places, e.g. 15.2574% and other answers to 0 decimal places, e.g. 125. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Personnel Allocation Bases Number of employees Support Departments 5 Allocation percent 11.1111 % Payroll costs 14600 Allocation percent 16.5533 % Costs $ Financial Operating Departments Assembly Finishing 18 17.7777 % 15000 $ 30100 17.0068 % 1000 % % 14 $ 28500 % % Total 45 $ 88200 Directly assigned costs $ 81800 $ 39000 $ i $ i $ Personnel Financial 9089 i 6933 i Total Allocation Costs $ 90889 $ 45933 $ i i % %

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