Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Support Department Cost Allocation-Direct Method Christmas Timber Inc. produces Christmas trees. The trees are produced through a cutting and pruning process. Machine maintenance and
Support Department Cost Allocation-Direct 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 Maintenance and janitults are allocated based on machine hours used and the number of trees in each department, respectively. The company estimates that the cutting and pruning are respectively in them at 1 time. The company also estimates that the cutting process reqares about 9 times as many macuse hours as the prug process. The total costs of each departent a Maintenance Department Jantonal Department Cutting Department Pruning Department $7,000 6,000 $4,000 12.000 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 process by pro typically have and 42 Production departments total costs Cutting Department Pruning Department Support department cost allocation-direct method Decker Tabletaps has two support departments (Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevant details for these departments are as follows Support Department Cost Driver Square footage to be serviced Janitorial Department Cafeteria Department Number of employees Janitorial Department Cafeteria: Department Cutting Assembly Department costs $320,000 $160,000 Department $1,510,000 Department $670,000 Square feet 40 Number of employees 8 5,000 3 400 3,600 24 6 Allocate the support department costs to the production departments using the direct method. Janitorial Department cost allocation Cafetena Department cost allocation Cutting Department Assembly Department Support Dept Cat Alcam-Recprocal Services Methed Bu Africa in produces laps and desktop computers, the company's production activities mainly occur in what the company cats Liner and Forming departments. The Cafeteria and Security department support the company's production activities and cats costs based on the number of employees and square feet, respectively. The total cost of the Security Department is $266,000. The total cost of the Cat Departments $141.000. The number of employ and the square fagenech department are as follows Employees Square Feet Security Department 500 Cafetare Department 2,400 Laser Diquement forming Department 40 50 4,000 1,600 ang the repracal services method of support department cost allocation, determine the total costs from the Security Department that should be located to the Cafeteria Department and to each of t Cafeteria Department Seunty Department allocation Laser Forming Department Department can departments
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started