eBook

Resources

Factory

Fabricating

Assembly

Direct costs

$$175,000$

$$310,000$

$$114,900$

$$92,000$

Normal activity:

Number of employees

Square footage

$1,300$

$50$

$70$

$160$

$5,600,13,200$

Resources Department are allocated on the basis of number of employees, and the costs of General Factory are alloc on the basis of square footage. Now assume that Valron Company uses the sequential method to allocate support department costs. The support departments are ranked in order of highest cost to lowest cost.

Required:

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

Proportion of Driver Used by

Human Resources

General Factory

Fabricating

Assembly

Human Resources

General Factory

Using the sequential method, allocate the costs of the Human Resources and General Factory departments to the Fabricating and Assembly departments. If an amount is zero, enter"$0".$ Round your answers to the nearest dollar.

Direct costs

$q,$

$q,$

$\backslash$table$[[$Human Resources,General Factory,Fabricating,Assembly$],[$$$,,$$$310,000,,$$$,,$$

Sequential $($step$)$ method of support department cost allocation