Valron Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. Direct costs Support Departments Producing Departments Human Resources General Factory Fabricating Assembly $185,000 $330,000 $114,400 $94,000 Normal activity: Number of employees 40 70 170 Square footage 1,300 5,800 13,500 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 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 Human Resources General Factory Fabricating Assembly Human Resources General Factory 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. Direct costs Allocate: General Factory Human Resources Total after allocation Support Departments Producing Departments Human Resources General Factory Fabricating Assembly
Valron Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. Direct costs Support Departments Producing Departments Human Resources General Factory Fabricating Assembly $185,000 $330,000 $114,400 $94,000 Normal activity: Number of employees 40 70 170 Square footage 1,300 5,800 13,500 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 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 Human Resources General Factory Fabricating Assembly Human Resources General Factory 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. Direct costs Allocate: General Factory Human Resources Total after allocation Support Departments Producing Departments Human Resources General Factory Fabricating Assembly
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Valron Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly.
Direct costs
Support Departments
Producing Departments
Human
Resources
General
Factory
Fabricating Assembly
$185,000
$330,000
$114,400 $94,000
Normal activity:
Number of employees
40
70
170
Square footage
1,300
5,800
13,500
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
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
Human Resources
General Factory
Fabricating
Assembly
Human Resources
General Factory
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.
Direct costs
Allocate:
General Factory
Human Resources
Total after allocation
Support Departments
Producing Departments
Human Resources
General Factory
Fabricating
Assembly
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