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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.
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 42,560 square feet and holds assets valued at about $69,120. The Cutting Department spans about 33,440 square feet and holds assets valued at about $146,880. 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. % b. Determine the percentage of Security costs that should be allocated to the Cutting Department % Support Department Cost Allocation-Direct Method Yo-Down Inc. produces yogurt. Information related to the company's yogurt production follows: Production Production Production Department 1 Department 2 Department 3 Support Department 1 cost driver 4,000 400 3,600 Support Department 1's costs total $130,000. Using the direct method of support department cost allocation, determine the costs from Support Department 1 that should be allocated to each production department. Production Production Production Department 1 Department 2 Department 3 Support Department 1 cost allocation
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