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,

Premium Company provides the following ABC costing information: Activities Costs Account inquiry $200,000 Account billing $140,000 Activity-cost drivers 25,000 Account verification accounts $75,000 Total costs 4,000,000 lines Correspondence letters 10,000 hours 40,000 accounts Account billing lines 250,000 lines Department B Account inquiry hours hours Select one: 4,000 letters The above activities are used by Departments A and B as follows: 4,000 hours Account verification accounts accounts 8,000 accounts Correspondence letters a. $8,750 b. $8,500 c. $8,250 d. $8,540 Total 1,600 letters $440,000 Department 2,500 10,000 400,000 lines letters How much of the account billing cost will be assigned to Department B 1,200

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   HumanResources GeneralFactory   Fabricating Assembly Direct costs $165,000 $380,000   $114,200 $90,000 Normal activity:           Number of employees — 40   70 150 Square footage 1,800 —   5,500 13,200 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: 1. Calculate the allocation ratios (rounded to four significant digits) for the four departments using the sequential method. If an amount is zero, enter "0". Use the rounded…

Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Department Square Feet Asset Values Employees Materials 26 30,000 $ 9,300 Personnel 13 12,000 2,480 Manufacturing Packaging 52 66,000 37,820 39 12,000 12,400 Total 130 120,000 $ 62,000 The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases. Indirect Expense Supervision Utilities Insurance Total Cost $ 82,700 Number of employees Allocation Base 52,000 Square feet occupied 23,500 Asset values $ 158,200 Allocate each of the three indirect expenses to the four departments.