Support department cost allocation—direct methodBecker 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 DriverJanitorial Department Square footage to be servicedCafeteria Department Number of employees JanitorialDepartmentCafeteriaDepartmentCuttingDepartmentAssemblyDepartmentDepartment costs$300,000 $200,000 $1,500,000 $680,000 Square feet50 5,000 2,000 3,000 Number of employees8 3 40 10 Allocate the support department costs to the production departments using the direct method. CuttingDepartment AssemblyDepartment Janitorial Department cost allocation$ $Cafeteria Department cost allocation$ $

Under the direct method of cost allocation, the cost under the support department are allocated…

Answered: Allocate the support department costs…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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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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