Christmas Timber, Inc., produces Christmas trees. The trees are produced through a cutting and pruning process. Machine

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Christmas Timber, Inc., produces Christmas trees. The trees are produced through a cutting and pruning process. Machine maintenance and janitorial labors are performed throughout the production process by nonproduction employees. Maintenance and janitorial costs are allocated based on machine hours used and the number of trees in each department, respectively. The company estimates that the cutting and pruning areas typically have about 20 and 60 trees, respectively, in them at one time. The company also estimates that the cutting process requires about 9 times as many machine hours as the pruning process. The total costs of each department are as follows: 

Maintenance Department...................................................$ 7,800

Janitorial Department...........................................................5,000

Cutting Department..............................................................54,500

Pruning Department..............................................................11,000

Using the direct method of support department cost allocation, determine the total cost of each production department after allocating all support costs to the production departments.

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Forensic And Investigative Accounting

ISBN: 9780808056300

10th Edition

Authors: G. Stevenson Smith D. Larry Crumbley, Edmund D. Fenton

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