Sequential (Step) Method of Support Department Cost Allocation Valron Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly Support Departments Producing Departments Human General Fabricating Assembly Resources Factory Direct costs $180,000 $320.000 $114.000 $95,000 Normal activity: 50 80 170 Number of emplovees & Square footage 1.800 5,600 13,300 Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated 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: 1. Calculate the allocation ratios (rounded to four significant digits) for the four departments using the sequential method. If an amount is zero, enter "0". Use the rounded values for subsequent calculations. Proportion of Driver Used by Fabricating General Factory Assembly Human Resources 0.68 0 0.32 Human Resources 0 0X X General Factory aliorate 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 Human Resources 0 0 0.32 0.68 General Factory 0 o 0 X ox 2. 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. Support Departments Producing Departments Human Resources General Factory Fabricating Assembly Direct costs $ 180,000 320,000 V 114,000 95,000 Allocate: General Factory 0 -320,000 96,000 X 224,000 x Human Resources 180,000 X 57,600 x 122,400 X Total after allocation o Correct 600 LX 441,400 X Feedback Y Check My Work 1. The sequential method, as well as direct and reciprocal methods, allocates all support department costs to the producing departments. 2. The sequential (or step) method ranks support departments and allocates from top ranking to lower ranking. Some reciprocity is recognized. After allocation, zero cost remains in the support departments. Pre-allocation total overhead must equal post-allocation overhead