1:59Not Secure – moodle.kent.edu.auValron Company has two support departments,Human Resources and General Factory, and twoproducing departments, Fabricating and AssemblySupportProducingDepartmentDepartmentHuman GeneralFabricatingAssemblyResources FactoryDirect$160,000$340,000 $114,600 $93,000costsNormalactivity:Number ofemployees6080170Squarefootage10005,700 13,300The costs of the Human Resources Department areallocated on the basis of number of employees, andthe costs of General Factory are allocated on thebasis of square footage. Valron Company uses thedirect method of support department cost allocation.Based on the above information, allocation ratios forhuman resources department cost to fabricating &Assembly department will be :Select one:a. 20% & 60%b. 32% & 68%c. 22% & 58%d. 30% & 40%

Under direct method, the cost of support departments is allocated to production department directly…

Valron Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly Support Producing Department Department Human General FabricatingAssembly Resources Factory Direct $160,000$340,000 $114,600 $93,000 costs Normal activity: Number of employees 60 80 170

Valron Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly Support Producing Department Department Human General FabricatingAssembly Resources Factory Direct $160,000$340,000 $114,600 $93,000 costs Normal activity: Number of employees 60 80 170

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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