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 Janitorial Department Cafeteria Department Cost Driver Square footage to be serviced Number of employees Janitorial Department Cafeteria Department Cutting Department Assembly Department Department costs $310,000 $169,000 Square feet Number of employees 50 10 5,000 3 $1,504,000 1,000 $680,000 4,000 30 10 Allocate the support department costs to the production departments using the reciprocal services method. Cutting Department Assembly Department Janitorial Department cost allocation $ 147,000 X Cafeteria Department cost allocation
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 Janitorial Department Cafeteria Department Cost Driver Square footage to be serviced Number of employees Janitorial Department Cafeteria Department Cutting Department Assembly Department Department costs $310,000 $169,000 Square feet Number of employees 50 10 5,000 3 $1,504,000 1,000 $680,000 4,000 30 10 Allocate the support department costs to the production departments using the reciprocal services method. Cutting Department Assembly Department Janitorial Department cost allocation $ 147,000 X Cafeteria Department cost allocation
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 8E
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am. 120.
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