1. Support Department Cost AllocationDirect Method

Charlies Wood Works produces wood products (e.g., cabinets, tables, picture frames, and so on). Production departments include Cutting and Assembly. The Janitorial and Security departments support the Cutting and Assembly departments. The Assembly Department spans about 48,720 square feet and holds assets valued at about $84,800. The Cutting Department spans about 35,280 square feet and holds assets valued at about $127,200. Charlies Wood Works allocates support department costs using the direct method. If costs from the Janitorial Department are allocated based on square feet and costs from the Security Department are allocated based on asset value.

a. Determine the percentage of Janitorial costs that should be allocated to the Assembly Department.

b. Determine the percentage of Security costs that should be allocated to the Cutting Department.

2. a)

Support Department Cost AllocationSequential Method

Bucknum Boys, Inc., produces hunting gear for buck hunting. The companys main production departments are Molding and Finishing. Production of the hunting gear cannot be accomplished without the supporting tasks of Materials Management and meals for production employees provided by the Cafeteria. Cafeteria costs are always higher than Materials Management costs. The company believes that the number of employees in each department is the best driver of Cafeteria costs. The number of employees in each department is as follows:

Molding Department	27
Finishing Department	30
Materials Management Department	3
Cafeteria Department	6

The company also believes that the value of support materials used in each department is the best driver for Materials Management costs. The support materials used in the Molding and Finishing departments are valued at $1,800 and $2,700, respectively. Using the sequential method for support department cost allocation (allocating Cafeteria costs first):

a. Determine the percentage of Cafeteria costs that should be allocated to the Molding Department.

b. Determine the percentage of Materials Management costs that should be allocated to the Finishing Department.