Homework Help is Here – Start Your Trial Now!
Business
Accounting
Reciprocal Method of Support Department Cost Allocation Vatron Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. Direct costs Normal activity: Required: Support Departments Producing Departments Human General Resources Factory Fabricating Assembly $160,000 $350,000 $114,800 Number of employees 170 Square footage 1,000 5,700 13,300 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footagen Now assume that Vairon Company uses the reciprocal method to allocate support department costs. Human Resources General Factory Human Resources 60 1. Calculate the allocation ratios (rounded to four significant digits) for the four departments using the reciprocal method. If an amount is zero, enter "0". Use the rounded valuem for subsequent calculations. 0.05 $95,000 80 General Factory Proportion of Driver Used by Fabricating ox O✓ 0.2667 X 0.285 ✔ Assembly 0.5667 X 0.665

Reciprocal Method of Support Department Cost Allocation Vatron Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. Direct costs Normal activity: Required: Support Departments Producing Departments Human General Resources Factory Fabricating Assembly $160,000 $350,000 $114,800 Number of employees 170 Square footage 1,000 5,700 13,300 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footagen Now assume that Vairon Company uses the reciprocal method to allocate support department costs. Human Resources General Factory Human Resources 60 1. Calculate the allocation ratios (rounded to four significant digits) for the four departments using the reciprocal method. If an amount is zero, enter "0". Use the rounded valuem for subsequent calculations. 0.05 $95,000 80 General Factory Proportion of Driver Used by Fabricating ox O✓ 0.2667 X 0.285 ✔ Assembly 0.5667 X 0.665

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

im not sure what im doing wrong

 

do not provide solutoion in image format thank you!

Human Resources General Factory Human Resources (HR) General Factory (GF) Direct costs Allocate: Human Resources Human Resources OV General Factory 0.05 Total after allocation 2. Develop a simultaneous equations system of total costs for the support departments. If required, round your answers to four decimal places. Use these numbers for subsequent calculations. If required, round all other intermediate calculations to six decimal places, except the answers computed in requirement 1. 17,000 X (GF) 160,000✔ Proportion of Driver Used by Fabricating General Factory 0 350,000 V (HR) Solve for the total reciprocated costs of each support department. (Round reciprocated total costs to the nearest dollar) Human Resources (HR) General Factory (GF) -160,000 X OX ox 0✔ 0X 3. Using the reciprocal method, allocate the costs of the Human Resources and General Factory departments to the Fabricating and Assembly departments. Round all allocated costs to the nearest dollar. If an amount is zero, enter "0". Note: There may be a "$1" difference due to intermediate rounding. Support Departments Producing Departments Human Resources General Factory 160,000✔ 350,000✔ 0X 0.2667 X 0.285 ✔ -340,000 X 0X Assembly Fabricating 0.5667 X 0.665 ✔ 114,800 ✓ 30,618 X 32,718 X 183,933 X Assembly 95,000 ✓ 53,837 X 63,175 X 222,775
Transcribed Image Text:Human Resources General Factory Human Resources (HR) General Factory (GF) Direct costs Allocate: Human Resources Human Resources OV General Factory 0.05 Total after allocation 2. Develop a simultaneous equations system of total costs for the support departments. If required, round your answers to four decimal places. Use these numbers for subsequent calculations. If required, round all other intermediate calculations to six decimal places, except the answers computed in requirement 1. 17,000 X (GF) 160,000✔ Proportion of Driver Used by Fabricating General Factory 0 350,000 V (HR) Solve for the total reciprocated costs of each support department. (Round reciprocated total costs to the nearest dollar) Human Resources (HR) General Factory (GF) -160,000 X OX ox 0✔ 0X 3. Using the reciprocal method, allocate the costs of the Human Resources and General Factory departments to the Fabricating and Assembly departments. Round all allocated costs to the nearest dollar. If an amount is zero, enter "0". Note: There may be a "$1" difference due to intermediate rounding. Support Departments Producing Departments Human Resources General Factory 160,000✔ 350,000✔ 0X 0.2667 X 0.285 ✔ -340,000 X 0X Assembly Fabricating 0.5667 X 0.665 ✔ 114,800 ✓ 30,618 X 32,718 X 183,933 X Assembly 95,000 ✓ 53,837 X 63,175 X 222,775
Reciprocal Method of Support Department Cost Allocation Valron Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. Direct costs Normal activity: Required: Support Departments Producing Departments Human General Resources Factory Fabricating Assembly $160,000 $350,000 $95,000 Number of employees Square footage 1,000 5,700 13,300 The costs of the Human 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 Vairon Company uses the reciprocal method to allocate support department costs. Human Resources General Factory $114,800 60 Human Resources o✓ 0.05 ✔ 1. Calculate the allocation ratios (rounded to four significant digits) for the four departments using the reciprocal method. If an amount is zero, enter "0". Use the rounded values for subsequent calculations. 80 General Factory 170 Proportion of Driver Used by Fabricating ox 0✔ 0.2667 0.285 Assembly 0.5667 X 0.665✓
Transcribed Image Text:Reciprocal Method of Support Department Cost Allocation Valron Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. Direct costs Normal activity: Required: Support Departments Producing Departments Human General Resources Factory Fabricating Assembly $160,000 $350,000 $95,000 Number of employees Square footage 1,000 5,700 13,300 The costs of the Human 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 Vairon Company uses the reciprocal method to allocate support department costs. Human Resources General Factory $114,800 60 Human Resources o✓ 0.05 ✔ 1. Calculate the allocation ratios (rounded to four significant digits) for the four departments using the reciprocal method. If an amount is zero, enter "0". Use the rounded values for subsequent calculations. 80 General Factory 170 Proportion of Driver Used by Fabricating ox 0✔ 0.2667 0.285 Assembly 0.5667 X 0.665✓
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost allocation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS