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Support Department Cost Allocation-Direct Method Support Department Cost AllocationDirect Method Christmas Timber, Inc., produces Christmas trees. The trees are produced through a cutting and pruning

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Support Department Cost Allocation-Direct Method

Support Department Cost AllocationDirect Method Christmas Timber, Inc., produces Christmas trees. The trees are produced through a cutting and pruning process. Machine maintenance and janitorial labors are performed throughout the production process by nonproduction employees. Maintenance and janitorial costs are allocated based on machine hours used and the number of trees in each department, respectively. The company estimates that the cutting and pruning areas typically have about 15 and 64 trees, respectively, in them at 1 time. The company also estimates that the cutting process requires about g times as many machine hours as the pruning process. The total costs of each department are as follows: Maintenance Department Janitorial Department Cutting Department Pruning Department $8,000 6,000 57 , ooo 8,000 using the direct method of support department cost allocation, determine the total cost of each production department after allocating all support costs to the production departments. Cutting Department Pruning Department Production departments' total costs

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