70.2K

Verified Solution

Link Copied!

Direct 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 Resources Factory Assembly Direct costs $330,000 $114,800 $140,000 $94,000 Normal activity: Number of employees 60 80 170 13,300 Square footage 1,000 5,700 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. Valron Company uses the direct method of support department cost allocation. Required: 1. Calculate the allocation ratios for the four departments using the direct method. If an amount is zero, enter "0". Round your answer to the nearest cent. Proportion of Driver Used by Assembly General Factory Human Resources Fabricating Human Resources General Factory 2. Using the direct method, allocate the costs of the Human Resources and General Factory departments to the Fabricating and Assembly departments. If an amount is zero, enter "O". Support Departments Producing Departments Fabricating Human Resources General Factory Assembly Direct costs Allocate: Human Resources General Factory Total after allocation

Answer & Explanation Solved by verified expert

See Answer