Direct Method of Support Department Cost Allocation

Vallon 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	$150,000	$350,000	$114,800	$95,000
Normal activity:
Number of employees	—	60	80	170
Square footage	1,000	—	5,700	13,300

The costs of the Human Resources Department are allocated on the basis of a number of employees, and the costs of General Factory are allocated on the basis of square footage. Vallon Company uses the direct method of support department cost allocation.

Required:

1. Calculate the allocation ratios for the four departments using the direct method. If an amount is zero, enter "0". Round your answer to the nearest cent.

	The 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 direct 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".

	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:
Human Resources	fill in the blank 13	fill in the blank 14		fill in the blank 15	fill in the blank 16
General Factory	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

Answer rating: 100% (QA)

Answer Requirements asked 1 HR GF Fabricating Assembly Human Reso... View the full answer