Blue Mountain Masterpieces produces pictures, paintings, and other home decor. The Printing and Framing production departments are supported by the Janitorial and Security departments. Janitorial costs are allocated to the production departments based on square feet, and security costs are allocated based on asset value. Information about these departments is detailed in the following table: Janitorial Department Security Department Printing Department Framing Department Square feet 760 1,040 4,230 4,770 Asset value $900 $1,240 $12,390 $8,610 Department cost $5,200 $6,600 $33,000 $29,000 Management has experimented with different support department cost allocation methods in the past. The different allocation methods did not yield large differences of cost allocation to the production departments. 1. Determine which support department cost allocation method Blue Mountain Masterpieces would most likely use to allocate its support department costs to the production departments. a. Direct cost allocation method. b. Sequential cost allocation method. c. Reciprocal cost allocation method. d. None of the above. 2. Determine the total costs allocated from each support department to each production department using the method you determined in part (1). Printing Department Framing Department Janitorial Department cost allocation $fill in the blank 2 $fill in the blank 3 Security Department cost allocation $fill in the blank 4 $fill in the blank 5 3a. Identify the department that gets higher cost due to square feet based cost allocation. a. Janitorial department b. Security department c. Printing department d. Framing department 3b. Identify the department that gets higher cost due to asset value based cost allocation. a. Janitorial department b. Security department c. Printing department d. Framing department I NEED ANSWERS TO 3A AND 3B
Support department cost allocation
Blue Mountain Masterpieces produces pictures, paintings, and other home decor. The Printing and Framing production departments are supported by the Janitorial and Security departments. Janitorial costs are allocated to the production departments based on square feet, and security costs are allocated based on asset value. Information about these departments is detailed in the following table:
| Janitorial Department |
Security Department |
Printing Department |
Framing Department |
|
| Square feet | 760 | 1,040 | 4,230 | 4,770 |
| Asset value | $900 | $1,240 | $12,390 | $8,610 |
| Department cost | $5,200 | $6,600 | $33,000 | $29,000 |
Management has experimented with different support department cost allocation methods in the past. The different allocation methods did not yield large differences of cost allocation to the production departments.
1. Determine which support department cost allocation method Blue Mountain Masterpieces would most likely use to allocate its support department costs to the production departments.
a. Direct cost allocation method.
b. Sequential cost allocation method.
c. Reciprocal cost allocation method.
d. None of the above.
2. Determine the total costs allocated from each support department to each production department using the method you determined in part (1).
| Printing Department |
Framing Department |
|
| Janitorial Department cost allocation | $fill in the blank 2 | $fill in the blank 3 |
| Security Department cost allocation | $fill in the blank 4 | $fill in the blank 5 |
3a. Identify the department that gets higher cost due to square feet based cost allocation.
a. Janitorial department
b. Security department
c. Printing department
d. Framing department
3b. Identify the department that gets higher cost due to asset value based cost allocation.
a. Janitorial department
b. Security department
c. Printing department
d. Framing department
I NEED ANSWERS TO 3A AND 3B
The cost allocation can be based on various parameters like square feet, asset cost and department cost.
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