Support Department Cost Allocation$-$Direct Method

Charlie's Wood Works produces wood products $($e$.$g$.,$ cabinets, tables, picture frames, and so on$).$ Production departments include Cutting and Assembly. The Janitorial and Security departments support the Cutting and Assembly departments. The Assembly Department spans about $44,280$ square feet and holds assets valued at about $$86,400.$ The Cutting Department spans about $37,720$ square feet and holds assets valued at about $$129,600.$ Charlie's Wood Works allocates support department costs using the direct method. If costs from the Janitorial Department are allocated based on square feet and costs from the Security Department are allocated based on asset value.

a$.$ Determine the percentage of Janitorial costs that should be allocated to the Assembly Department.

$x\%$

b$.$ Determine the percentage of Security costs that should be allocated to the Cutting Department.

$x\%$

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One of the three methods commonly used for allocating support department costs to production is the direct method. The direct method allocates all support department costs directly to production departments. In doing so$,$ the direct method ignores the possibility that some support departments may also serve other support departments.