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 $170,000 $1,480,000 $670,000 Square feet 48 5,300 1,200 1,800 Number of employees 10 2 36 4 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
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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 | $170,000 | $1,480,000 | $670,000 |
| Square feet | 48 | 5,300 | 1,200 | 1,800 |
| Number of employees | 10 | 2 | 36 | 4 |
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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