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17. Albemarle, Inc., has two producing departments (X and Y). Each producing department is held responsible for a share of the costs of a support
17. Albemarle, Inc., has two producing departments (X and Y). Each producing department is held responsible for a share of the costs of a support department. Actual and budgeted data are as follows: 2018 Actual Support department hours used: Department 8,000 Department Y Total hours 16,000 24,000 Support department costs: Actual support department costs Budgeted fixed support dept. costs $72,000 $24,000 Budgeted variable rate per hour $ 3.00 Normal, budgeted support department usage is 12,000 hours each for Department X and Department Y. Required: a. Assuming the purpose is product costing, allocate the costs of the support department using the direct method. b. Assuming the purpose is to evaluate performance, allocate the costs of the support department using the direct method. C. Briefly identify and describe the underlying objectives behind allocating Support Department costs to producing Departments
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