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Support Departments Producing Departments Human Resources General Factory Fabricating Assembly $185,000 $370,000 $114,700 $96,000 Direct costs Normal activity: Number of employees Square footage 1,000 70 150 5,400 13,100 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 Chekov Company uses the sequential method to Kallocate support department costs. The support departments are ranked in order of highest cost to lowest cost. Required: 1. Calculate the allocation ratios (rounded to six 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 Human Resources General Factory Fabricating Human Resources General Factory 0 0.051282 0.276923 Assembly 0.671795 4 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 Direct costs Allocate: General Factory Human Resources Total after allocation Human Resources 185,000 General Factory 370,000 Fabricating 114,700 Assembly 96,000 Pre Next

Support Departments Producing Departments Human Resources General Factory Fabricating Assembly $185,000 $370,000 $114,700 $96,000 Direct costs Normal activity: Number of employees Square footage 1,000 70 150 5,400 13,100 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 Chekov Company uses the sequential method to Kallocate support department costs. The support departments are ranked in order of highest cost to lowest cost. Required: 1. Calculate the allocation ratios (rounded to six 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 Human Resources General Factory Fabricating Human Resources General Factory 0 0.051282 0.276923 Assembly 0.671795 4 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 Direct costs Allocate: General Factory Human Resources Total after allocation Human Resources 185,000 General Factory 370,000 Fabricating 114,700 Assembly 96,000 Pre Next

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 4CE: Refer to Cornerstone Exercise 7.3. Now assume that Valron Company uses the sequential method to...
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Support Departments Producing Departments Human Resources General Factory Fabricating Assembly $185,000 $370,000 $114,700 $96,000 Direct costs Normal activity: Number of employees Square footage 1,000 70 150 5,400 13,100 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 Chekov Company uses the sequential method to Kallocate support department costs. The support departments are ranked in order of highest cost to lowest cost. Required: 1. Calculate the allocation ratios (rounded to six 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 Human Resources General Factory Fabricating Human Resources General Factory 0 0.051282 0.276923 Assembly 0.671795 4 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 Direct costs Allocate: General Factory Human Resources Total after allocation Human Resources 185,000 General Factory 370,000 Fabricating 114,700 Assembly 96,000 Pre Next
Transcribed Image Text:Support Departments Producing Departments Human Resources General Factory Fabricating Assembly $185,000 $370,000 $114,700 $96,000 Direct costs Normal activity: Number of employees Square footage 1,000 70 150 5,400 13,100 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 Chekov Company uses the sequential method to Kallocate support department costs. The support departments are ranked in order of highest cost to lowest cost. Required: 1. Calculate the allocation ratios (rounded to six 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 Human Resources General Factory Fabricating Human Resources General Factory 0 0.051282 0.276923 Assembly 0.671795 4 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 Direct costs Allocate: General Factory Human Resources Total after allocation Human Resources 185,000 General Factory 370,000 Fabricating 114,700 Assembly 96,000 Pre Next
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