Direct costs Normal activity: Number of employees Square footage Support Departments Human Resources $160,000 1,200 General Factory $330,000 40 Producing Departments Fabricating Assembly $114,400 80 5,400 $93,000 150 13,800 he costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated wasis of square footage. Now assume that Chekov Company uses the sequential method to allocate support department costs. The support depar 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,
Direct costs Normal activity: Number of employees Square footage Support Departments Human Resources $160,000 1,200 General Factory $330,000 40 Producing Departments Fabricating Assembly $114,400 80 5,400 $93,000 150 13,800 he costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated wasis of square footage. Now assume that Chekov Company uses the sequential method to allocate support department costs. The support depar 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,
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter5: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 8E
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