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
Resources General
Factory Fabricating Assembly
Direct costs $ $ $ $
Normal activity:
Number of employees
Square footage
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:
Calculate the allocation ratios for the four departments using the direct method. If an amount is zero, enter Round your answer to the nearest cent.
Proportion of Driver Used by
Human Resources General Factory Fabricating Assembly
Human Resources fill in the blank fill in the blank fill in the blank fill in the blank
General Factory fill in the blank fill in the blank fill in the blank fill in the blank
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
Support Departments Producing Departments
Human Resources General Factory Fabricating Assembly
Direct costs $fill in the blank $fill in the blank $fill in the blank $fill in the blank
Allocate:
Human Resources fill in the blank fill in the blank fill in the blank fill in the blank
General Factory fill in the blank fill in the blank fill in the blank fill in the blank
Total after allocation $fill in the blank $fill in the blank $fill in the blank $fill in the blank