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chp 19 ?4 Support Department Colt Allocation-Direct Method Christmas Timber, Inci, produces Christmas trees. The trees are produced through a catting and pruning process. Machine
chp 19 ?4
Support Department Colt Allocation-Direct Method Christmas Timber, Inci, produces Christmas trees. The trees are produced through a catting and pruning process. Machine maintenance and janitariat labses are performed throughout the production process by nongroduction empioyens. Maintenance and janitorlar costs are allocited based oo machine hours used and the aumber of trees in each department, respectively. The comgany estimates that the cutting and pruning areas typically have abouf th and 72 trees, respectirely, in them at 1 lime. The company alse estimates that the cuttinj process requires about 9 times as many machine hours as the oruning orocoss; The total costi af esch department are as follows Using the direct method of support department cost allocation, determine the total cost af each production department after allocatiog ail support costs to the production. departments Step by Step Solution
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