Support department cost allocation—sequential 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 $310,000        $169,000     $1,504,000      $680,000     Square feet 50        5,000         1,000      4,000     Number of employees 10        3     30      10     Allocate the support department costs to the production departments using the sequential method. Allocate the support department with the highest department cost first.   Cutting Department   Assembly Department Janitorial Department $fill in the blank 1   $fill in the blank 2 Cafeteria Department $fill in the blank 3   $fill in the blank 4

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—sequential 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 $310,000        $169,000     $1,504,000      $680,000    
Square feet 50        5,000         1,000      4,000    
Number of employees 10        3     30      10    

Allocate the support department costs to the production departments using the sequential method.

Allocate the support department with the highest department cost first.

  Cutting
Department
  Assembly
Department
Janitorial Department $fill in the blank 1   $fill in the blank 2
Cafeteria Department $fill in the blank 3   $fill in the blank 4
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