Vines Company is a manufacturer of women's and men's swimsuits. The company uses a dual-rate system to allocate support
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Vines Company is a manufacturer of women's and men's swimsuits. The company uses a dual-rate system to allocate support
Please allocate fixed support costs using "the reciprocalmethod"
It's better if you could follow this template and explain howyou came up with the numbers
Support Departments
Operating Departments
Accounting
Human Resources
Janitorial
Women’s
Men’s
Total
Allocation bases
Step 1: Employees
% of Allocation
Step 2:
Square metres
% of Allocation
Step 3:
Direct costs
% of Allocation
Fixed
support costs
Allocations:
Step 1:
Human resources
Step 2:
Janitorial
Step 3: Accounting
Total Allocations
Vines Company is a manufacturer of women's and men's swimsuits. The company uses a dual-rate system to allocate support costs. Last year's support departments' fixed and variable costs are as follows: Variable costs Fixed costs Total cost Accounting $18,420 $55,260 $73,680 Employees Time spent for accounting Time spent cleaning Square metres Direct costs Allocation base amounts for all the departments are as follows: Human Resources Accounting Human Resources $22,104 $100,696 $122,800 2 15% 5% 80 $73,680 2 10% 10% 100 $122,800 Janitorial $60,360 $60,360 $120,720 Total $100,884 $216,316 $317,200 Janitorial Women's 10 Men's 4 6 20% 30% 25% 15% 30% 40% 120 500 500 $120,720 $800,000 $500,000 Total 24 100% 100% 1,300 $1,617,200