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Vheck My Work The order in which support department costs are allocated under the sequential method is important Support department cost allocationsequential method Martay Creations

image text in transcribed Vheck My Work The order in which support department costs are allocated under the sequential method is important

Support department cost allocationsequential method Martay Creations produces winter scarves. The scarves are produced in the Cutting and Sewing departments. The Maintenance and Security departments support these production departments, and allocate costs based on machine hours and square feet, respectively. Information about each department is provided in the following table: Department Maintenance Department Security Department Cutting Department Sewing Department Total Cost $2,200 4,500 21,200 24,900 Number of Employees Machine Hours 3,600 5,400 Square Feet soo 2,400 3,000 Using the sequential method and allocating the support department With the highest costs first, allocate all support department costs to the production departments. Then compute the total cost of each production department. Cutting Department Sewing Department Production departments' total costs My WE rk The sequential method considers some inter-support-department services. It does this by first allocating costs from one support department to the other support departments and to the production departments. A second support department is then selected and its costs are allocated to the remaining support departments and to the production departments. Under this method, support department costs are never allocated back to the support department whose costs have already been allocated. The order in which support department costs are allocated under the sequential method is important. Check My Work All work saved. Email Instructor Save and Exit Submit Assignment for Grading

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