Jasper Manufacturing Company has two service departments Manufacturing Support and Facilities Management, and two production departments Fabrication and Assembly. The Company produces only 2 products. The following information is provided to allocate Departmental Costs from the Service Departments to the Production Departments using the Direct Method. The costs from the production departments then needs to be allocated to each of the 2 products
	Service Departments		Production Departments		Total Direct Labor Hours (Cost Driver)
	Manufacturing Support	Facilities Mgmt	Fabrication	Assembly
Cost Driver
Direct Labor Hours	1,000	1,000	5,000	3,000	10,000
			The total DLHs are used 60% for Product # 1 and 40% for Product # 2	The total DLHs are used 50% for Product # 1 and 50% for Product # 2
FROM	TO
	Manufacturing Support	Facilities Mgmt	Fabrication	Assembly
Manufacturing Support	0%	10%	50%	40%
Facilities Management	20%	0%	45%	35%
The direct costs traced to each department is as follows:
	Manufacturing Support	$ 300,000
	Facilities Management	$ 400,000
	Fabrication	$ 1,750,000
	Assembly	$ 250,000
Non-traceable Indirect FOH costs are allocated to each depart based on Direct Labor Hours		$ 300,000
Required: Allocate the service department costs to the production departments using the direct method. (You can use the template that is provided.) Based on your calculations provide your answers in the tables below.
a) What is the amount of the cost allocated from each Service Department Cost to the Production Departments
b) What is the Total Cost for each of the two Production Departments
c) What is the Cost allocated to each Product from each of the two Production Departments

please use template provided

First Phase: Trace Direct Costs and Allocate Indirect Costs to ALL Departmental Costs Step #1 - Determine the of the total cost driver incurred by each department Production Departments Service Departments Manufacturing Facilities Mgmt Support Total of Cost Driver Fabrication Assembly Cost Driver Direct Labor Hours % of Total Hours Step #2 - Dicect. Cost traced to each Department and Indirect.cost allocated to each Department Production Departments Service Departments Manufacturing Facilities Mgmt Support Type of costs Fabrication Assembly Total Cost S S S S Direct Costs Indirect FOH Cost allocated to each department S $ S Total Cost by Department $ Sten 1-distribution of service provided Manufacturing Support Department Facilities Mgmt Fabrication Assembly Total Manufacturing Support Facilities Mgmt Step 2 - Determine the allocation to ONLY the Production Departments Fabrication Assembly Total Manufacturing Support 35 Allocation to ONLY Production Departments Facilities Mert s Allocation to ONLY Production Departments Sten # 3 - Allocation of Service Department Cost to the Production Departments Department Total Cost Fabrication Assembly Total Cost Manufacturing Support S S S Facilities Mamt $ Step 4 Total Cost for the Production Departments Type of costs Fabrication Assembly Total Cost Costs from First Phase S S Costs from Service Dept - Manufacturing Support S Costs from Service Dept. Facilities Mgmt $ Total Costs Third Phase: Allocation of Production Departments Cost to the Product The Production Departments allocate their cost to the product based on Direct Labor Hours Cost allocated to Product 1 Cost allocated to Product 2 Total Cost Total Cost Fabrication Dept Third Phase: Allocation of Production Departments Cost to the Product The Production Departments allocate their cost to the product based on Direct Labor Hours Cost allocated to Product 1 Cost allocated to Product 2 Total Cost Total Cost Fabrication Dept S Total Cost Assembly Dept $ Total Cost for Each Product line First Phase: Trace Direct Costs and Allocate Indirect Costs to ALL Departmental Costs Step #1 - Determine the of the total cost driver incurred by each department Production Departments Service Departments Manufacturing Facilities Mgmt Support Total of Cost Driver Fabrication Assembly Cost Driver Direct Labor Hours % of Total Hours Step #2 - Dicect. Cost traced to each Department and Indirect.cost allocated to each Department Production Departments Service Departments Manufacturing Facilities Mgmt Support Type of costs Fabrication Assembly Total Cost S S S S Direct Costs Indirect FOH Cost allocated to each department S $ S Total Cost by Department $ Sten 1-distribution of service provided Manufacturing Support Department Facilities Mgmt Fabrication Assembly Total Manufacturing Support Facilities Mgmt Step 2 - Determine the allocation to ONLY the Production Departments Fabrication Assembly Total Manufacturing Support 35 Allocation to ONLY Production Departments Facilities Mert s Allocation to ONLY Production Departments Sten # 3 - Allocation of Service Department Cost to the Production Departments Department Total Cost Fabrication Assembly Total Cost Manufacturing Support S S S Facilities Mamt $ Step 4 Total Cost for the Production Departments Type of costs Fabrication Assembly Total Cost Costs from First Phase S S Costs from Service Dept - Manufacturing Support S Costs from Service Dept. Facilities Mgmt $ Total Costs Third Phase: Allocation of Production Departments Cost to the Product The Production Departments allocate their cost to the product based on Direct Labor Hours Cost allocated to Product 1 Cost allocated to Product 2 Total Cost Total Cost Fabrication Dept Third Phase: Allocation of Production Departments Cost to the Product The Production Departments allocate their cost to the product based on Direct Labor Hours Cost allocated to Product 1 Cost allocated to Product 2 Total Cost Total Cost Fabrication Dept S Total Cost Assembly Dept $ Total Cost for Each Product line