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Becker Tabletops has two support departments (Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevant details for these departments are as follows: Support

Becker Tabletops has two support departments (Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevant details for these departments are as follows:

Support Department Cost Driver
Janitorial Department Square footage to be serviced
Cafeteria Department Number of employees

Janitorial Department Cafeteria Department Cutting Department Assembly Department
Department costs $310,000 $169,000 $1,504,000 $680,000
Square feet 50 5,000 1,000 4,000
Number of employees 10 3 30 10

Allocate the support department costs to the production departments using the sequential method.

Allocate the support department with the highest department cost first.

Cutting Department Assembly Department
Janitorial Department $ $
Cafeteria Department $ $

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Lilys Lemonade Stand makes three types of lemonade: pure, raspberry, and strawberry. The lemonade is produced through a joint mixing process that costs a total of $30 per batch. One batch produces 32 cups of pure lemonade, 21 cups of strawberry lemonade, and 21 cups of raspberry lemonade. After the split-off point, all three lemonades can be sold for $0.80 per cup, but strawberry and raspberry lemonade can be processed further by adding artificial coloring and flavoring and sold for $0.95 and $1.00 per cup, respectively. It is estimated that these additional processing costs are $0.75 and $1.80 per batch for strawberry and raspberry lemonade, respectively.

Allocate the joint costs of production to each product using the net realizable value method.

Joint Product Allocation
Pure lemonade $
Strawberry lemonade
Raspberry lemonade
Totals $

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Becker Tabletops has two support departments ( Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevant details for these departments are as follows:

Support Department Cost Driver
Janitorial Department Square footage to be serviced
Cafeteria Department Number of employees

Janitorial Department Cafeteria Department Cutting Department Assembly Department
Department costs $310,000 $169,000 $1,504,000 $680,000
Square feet 50 5,000 1,000 4,000
Number of employees 10 3 30 10

Allocate the support department costs to the production departments using the reciprocal services method.

Cutting Department Assembly Department
Janitorial Department cost allocation $ $
Cafeteria Department cost allocation $ $

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