Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

THIS is all one question thank you!!! Support department cost allocation-reciprocal services method Davis Snowflake & Co. produces Christmas stockings in its Cutting and Sewing

image text in transcribedimage text in transcribed

THIS is all one question thank you!!!

image text in transcribedimage text in transcribed

Support department cost allocation-reciprocal services method Davis Snowflake & Co. produces Christmas stockings in its Cutting and Sewing departments. The Maintenance and Security departments support the production of the stockings. Costs from the Maintenance Department are allocated based on machine hours, and costs from the Security Department are allocated based on asset value. Information about each department is provided in the following table: Maintenance Security Cutting Sewing Department Department Department Department Machine hours 800 2,000 6,800 11,200 Asset value $2,000 $1,430 $2,000 $6,000 Department cost $32,400 $14,400 $64,000 $83,000 Determine the total cost of each production department after allocating all support department costs to the production departments using the reciprocal services method. Cutting Sewing Department Department Production departments' total costs Support department cost allocation-direct method Becker Tabletops 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 Janitorial Department Square footage to be serviced Cafeteria Department Number of employees 900 Janitorial Cafeteria Cutting Assembly Department Department Department Department Department costs $320,000 $190,000 $1,500,000 $680,000 Square feet 50 5,200 2,100 Number of employees 8 2 45 5 Allocate the support department costs to the production departments using the direct method. Cutting Assembly Department Department Janitorial Department cost allocation Cafeteria Department cost allocation

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Statistics Using Excel

Authors: Glyn Davis, Branko Pecar

2nd Edition

0199659516, 9780199659517

Students also viewed these Accounting questions