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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
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 Allocate support costs using the direct method. (Round percentages to 4 decimal places, e.g. 15.2574% and other answers to O decimal places, e.g. 125. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Allocation Bases Personnel Support Departments Number of employees Allocation percent Payroll costs Allocation percent Costs Directly assigned costs Personnel Financial +A Total Allocation Costs $ +A % % do Financial +A +A $ $ +A % do % do Assembly Operating Departments +A $ Finishing Total % do +A de % +A +A % do +A GA % % % +A +A
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