Sequential $($Step$)$ Method of Support Department Cost Allocation

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

Direct costs

Number of employees

Square footage

costs. The support departments are ranked in order of highest cost to lowest cost.

Required:

Proportion of Driver Used by

Support Departments

Producing Departments

Direct costs

Allocate:

General Factory

Human Resources

Total after allocation