Allocate the support department costs to the production departments using the direct method.
Allocate the support department costs to the production departments using the direct method.
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter19: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 8E: Becker Tabletops has two support departments (Janitorial and Cafeteria) and two production...
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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 |
Janitorial Department |
Cafeteria Department |
Cutting Department |
Assembly Department |
|
Department costs | $300,000 | $200,000 | $1,500,000 | $680,000 |
Square feet | 50 | 5,000 | 2,000 | 3,000 |
Number of employees | 8 | 3 | 40 | 10 |
Allocate the support department costs to the production departments using the direct method.
Cutting Department |
Assembly Department |
||
Janitorial Department cost allocation | $ | $ | |
Cafeteria Department cost allocation | $ | $ |
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