eBook Question Content Area Direct Method of Support Department Cost Allocation Chekov Company has two...

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Direct Method of Support Department Cost Allocation

Chekov 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	$150,000	$340,000	$114,200	$95,000
Normal activity:
Number of employees		60	45	80
Square footage	1,500		6,000	14,000

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. Chekov 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
	Human Resources	General Factory	Fabricating	Assembly
Human Resources	fill in the blank 1	fill in the blank 2	fill in the blank 3	fill in the blank 4
General Factory	fill in the blank 5	fill in the blank 6	fill in the blank 7	fill in the blank 8

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 "0".

Direct Method of Support Department Cost Allocation Chekov Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly

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