1. 	Maintenance	Administration	Log Yard	Milling	Drying	Packaging
   Hours worked	11,825	10,692	8,910	28,512	23,166	17,820
   Number of employees	6	4	4	10	12	8
   Department costs	$193,600	$237,900	$340,950	$521,400	$476,450	$246,400

   Your next step is to determine the proportional usage of each support department's cost driver by the other departments to which its costs are to be allocated. Complete the following tables.

   Maintenance
   Department	Hours Worked Hours Worked # of Employees	Usage Percent
   Administration Administration Maintenance			%
   Log Yard
   Milling
   Drying
   Packaging
   Totals			%

   Administration
   Department	# of Employees Hours Worked # of Employees	Usage Percent
   Maintenance Administration Maintenance			%
   Log Yard
   Milling
   Drying
   Packaging
   Totals			%

   Using the cells below, create the formulas that will simultaneously allocate support department costs among the departments. "M" represents Maintenance and "A" represents Administration.

   M = $ + (% A

   • A
   • M
   )

   A = $ + (% M

   • A
   • M
   )

   Solve the equations, If required round any decimal to three places in your computations. For example, .0183 would be rounded to .018. Round your final answer to the nearest dollar.

   M = $

   A = $

   Use the following table to allocate the support cost departments. Round allocated amounts to the nearest whole dollar. If an amount is zero, enter "0".

   	Support Departments			Production Departments
   	Maintenance	Administration		Log Yard	Milling	Drying	Packaging
   Hours worked
   Number of employees
   Department cost	$	$		$	$	$	$
   Maintenance
   Administration
   Final department costs	$	$		$	$	$	$

   Using the rounded amounts from the support cost allocation table (previous task), complete the following table to allocate the production department costs to each product line. Round allocated amounts to the nearest whole dollar.

   	Thousand Board Feet	Weight Factor	Weighted Thous. Bd. Ft.	Weighted % of Board Feet			Final Department Costs	Cost Allocation to Product Line
   Log Yard:
   Hardwood					%		$	$
   Softwood
   Total Log Yard					%			$
   Milling:
   Hardwood					%		$	$
   Softwood
   Total Milling					%			$
   Drying:
   Hardwood					%		$	$
   Softwood
   Total Drying					%			$
   Packaging:
   Hardwood					%		$	$
   Softwood
   Total Packaging					%			$

   Forest Land earns revenue of $100,000 from selling its by-products, wood shavings and saw dust. Allocate the revenue to each product line in the following table and determine the final cost per product line.

   	Thousand Board Feet	Percentage of Board Feet		By-product Revenue	Portion of By- product Revenue
   Hardwood			%	$100,000	$
   Softwood				100,000
   Total			%		$

   	Cost per Product Line
   	Hardwood	Softwood
   Log Yard	$	$
   Milling
   Drying
   Packaging
   Subtotal	$	$
   Portion of By-product revenue
   Total cost per product line	$	$