Support department cost allocation-sequential method Crystal Scarves & Co. 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 Production departments' total costs $ 2,300 3,000 19,600 20,800 Number of Employees 6 Cutting Department 4 20 18 Machine Hours 57 0 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. Sewing Department 3,700 5,550 Square Feet 800 600 3,200 4,000
Support department cost allocation-sequential method Crystal Scarves & Co. 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 Production departments' total costs $ 2,300 3,000 19,600 20,800 Number of Employees 6 Cutting Department 4 20 18 Machine Hours 57 0 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. Sewing Department 3,700 5,550 Square Feet 800 600 3,200 4,000
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter5: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 9E
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