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Support Department Cost Allocation - Sequential Method B ck Mountain Sports, Inc., produces skiing and snowboarding gear. The company's main production departments are Molding and
Support Department Cost AllocationSequential Method Bck Mountain Sports, Inc., produces skiing and snowboarding gear. The company's main production departments are Molding and Finishing. Production of the skiing and snowboarding gear cannot be accomplished without the supporting tasks of Materials Management and meals for production employees provided by the Cafeteria. Cafeteria costs are always higher than Materials Management costs. The company believes that the number of employees in each department is the best driver of Cafeteria costs. The number of employees in each department is as follows: Molding Department Finishing Department Materials Management Department Cafeteria Department The company also believes that the value of support materials used in each department is the best driver for Materials Management costs. The support materials used in the Molding and Finishing departments are valued at $ and $ respectively. Using the sequential method for support department cost allocation allocating Cafeteria costs first: a Determine the percentage of Cafeteria costs that should be allocated to the Molding Department. b Determine the percentage of Materials Management costs that should be allocated to the Finishing Department.
Support Department Cost AllocationSequential Method
Bck Mountain Sports, Inc., produces skiing and snowboarding gear. The company's main production departments are Molding and Finishing. Production of the skiing and snowboarding gear cannot be accomplished without the supporting tasks of Materials Management and meals for production employees provided by the Cafeteria. Cafeteria costs are always higher than Materials Management costs. The company believes that the number of employees in each department is the best driver of Cafeteria costs. The number of employees in each department is as follows:
Molding Department
Finishing Department
Materials Management Department
Cafeteria Department
The company also believes that the value of support materials used in each department is the best driver for Materials Management costs. The support materials used in the Molding and Finishing departments are valued at $ and $ respectively. Using the sequential method for support department cost allocation allocating Cafeteria costs first:
a Determine the percentage of Cafeteria costs that should be allocated to the Molding Department.
b Determine the percentage of Materials Management costs that should be allocated to the Finishing Department.
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