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Forestland Wood Products manufactures lumber and wood components. The company has two main product lines: Hardwood and Softwood. Hardwoods are used for flooring, cabinetry paneling, doors and trimwork. Softwoods are used for wall studs, joists, planks, rafters, beams, stringers, posts, decking, subflooring and concrete form. Forestand also sells a br.product wood shavings and saw dust, Shavings are purchased for form and industrial use as well as for further processing into wood pelets and fiber board. The revenue is located to each prote line based on the percentage of thousand board feet produced by the product line Your accounting firm has been retained by Forestland for three years. You have been assigned to properly allocate support department costs. Your manager wants the allocation to be as accurate as possible and has instructed you to use the reciprocal services method. She reminds you that revenue from by products are used to offset costs You begin your research and learn that there are four production departments: log yard, miting, drying, and packaging, The Hardwood line produces 300 thousand board foet of product while the Softwood produces 900 thousand board feet. The miling department direct costs, direct labor and overhead per thousand board feet for Hardwood is two times that of Softwood, You have been instructed to use the weighted average method to allocate the costs in the milling department between the two product lines. The remaining department costs are the same for both product lines, per thousand board feet. There are two support departments: maintenance and administration. The maintenance department is responsible for maintaining all equipment and Janitorial duties. Because the equipment is used more extensively for hardwoods, the department cost driver is hours worked. The administration department includes the company president and his staff. Their duties include accounting, human resources, and information technology. The cost driver for the administration department is number of employees In your first step, you determine the costs traced to each department and the usage of the support department cost drivers. You have created the following table Maintenance Administration Log Yard Milling Drying Packaging Hours worked 11,825 8,910 10,692 23,166 28,512 17,820 Number of employees 6 4 10 12 $176,000 Department costs $216,275 $309,940 $747,000 $224,000 $433,160 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 alocated. Complete the following to Maintenance Department Usage Percent % Log Yard Milling Drying Packaging Totals % Administration Department Usage Percent % Log Yard Milling Drying Packaging Totals % Using the cells below, create the formulas that will simultaneously allocate support department costs among th M % A + Solve the equations. If required round any decimal to three places in your computations. For example, .0163 would be rounded to 016. 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, entero 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, Previous 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 9% Total Log Yard Milling: Hardwood Softwood % Total Milling Drying: Hardwood Softwood % Total Drying Packaging: 9 X Hardwood Softwood 96 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 com per product line Thousand Percentage of By product Portion of By Board Feet Board Feet Revenue product Revenue Hardwood 96 $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