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Support department cost allocation - comparison Becker Tabletops has two support departments ( Janitorial and Cafeteria ) and two production departments ( Cutting and Assembly
Support department cost allocationcomparison
Becker Tabletops has two support departments Janitorial and Cafeteria and two production departments Cutting and Assembly Relevant details for these departments are as follows:
Allocated the support department costs to the production departments using the direct method below.
Allocated the support department costs to the production departments using the reciprocal services method below.
Allocated the support department costs to the production departments and Cafeteria Department using the sequential method below.
Compare the total support department costs allocated to each production department under each cost allocation method.
a Which production department is allocated the most support department costs under the direct method?
Cost
b Which production department is allocated the most support department costs under the sequential method?
c Which production department is allocated the most support department costs under the reciprocal services method?
Cost
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