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Support Department and Joint Cost Allocation Practice Quiz Support Department Cost Allocation Johnson Company produced chemical products. Janitorial and maintenance support department costs are allocated to the mixing and blending production departments based on square footage (janitorial) and machine hours (maintenance), respectively. Relevant department data is as follows: 1. Using the direct method of support department cost allocation, determine the total cost of the Mixing and Blending departments after allocating all support costs to the production departments. 2. Why are the support department costs allocated to the production departments? What is the relationship of this portion of the chapter to the last chapter? 3. Provide an example of a support department and how its costs might be allocated. Try to identify an example that has not already been given by another student. Joint Cost Allocation Anderson Company makes three types of paint products: base, primer and paint. All products go through a joint mixing process which produces 8,000 gallons of base, 6,000 gallons of primer and 4,000 gallons of paint at a joint cost of $10,000. In addition, the mixing process for primer is two times longer than for base, and the mixing process for paint is three times longer than for base. 1. Allocate the joint cost of production of $10,000 to each product using the weighted average method. 2. Assuming the market price at the split of point for base is $3 per gallon, primer is $4 per gallon and paint is $8 per gallon, use the market value at split-off to allocate the $10,000 of joint production costs. 3. Analyze the differences in the methods used in #1 and #2 above. What are the reasons for the difference? When would each method be most appropriate to use? Give an example of two products which might use each method above