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D E F G H 1 K L Boysen berry Corp. has two support departments, Personnel (P) and Maintenance (M), and two producing departments, Blending
D E F G H 1 K L Boysen berry Corp. has two support departments, Personnel (P) and Maintenance (M), and two producing departments, Blending (B) and Finishing (F). Estim ated service hours used by each department and direct costs for each department are as follows: M N Part B Support P M Support Dept. Used by Department P M P B F 1,000 M 6,000 3,000 1,000 Direct costs 4.000 $9,000 5,000 $13,500 3 $40,000 $35,000 2 Required 0 . Prepare a cost schedule including direct and allocated costs using the direct allocation method 1 b. Prepare a cost schedule including direct and allocated costs using the sequential allocation 12 method (rank from highest to lowest direct cost) 13 Part A 14 Support Producing 15 P M B F 16 Hours 17 P 1,000 6,000 3,000 18 M 1,000 4,000 5,000 19 20 Direct Costs $ 9,000 $ 13,500 $ 40,000 $ 35,000 21 Cost Allocation 22 P $ (9,000) 6,000 3,000 23 M $ (13,500) 6,000 7,500 24 25 Total $ $ $ 52,000 $ 45,500 26 Producing B F Hours 1,000 M 6,000 4,000 1,000 3,000 5,000 $40,000 $35,000 Direct Cos $ 9,000 $13,500 Cost Allocation M 1,350 (13,500) Sub-total $10,350 $ 5,400 6,750 $45,400 $41,750 P 6,900 3,450 27 Total $ $ $ 52,300 $ 45,200 28
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