Sequential Step 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 $ $ $ $
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. Now assume that Chekov Company uses the sequential method to allocate support department costs. The support departments are ranked in order of highest cost to lowest cost.Required:
Calculate the allocation ratios rounded to six significant digits for the four departments using the sequential method. If an amount is zero, enter Use
rounded values for subsequent calculations.
Proportion of Driver Used by
Using the sequential method, allocate the costs of the Human Resources and General Factory departments to the Fabricating and Assembly departments. If a
amount is zero, enter" Round your answers to the nearest dollar.
Support Departments
Allocate:
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The sequential method, as well as direct and reciprocal methods, allocates all support department costs to the producing departments.
Answer only quesiton two please