eBook Show Me How Support Department Cost Allocation-Sequential Method Bucknum Boys, Inc., produces hunting gear for buck hunting. The company's main production departments are Molding and Finishing. Production of the hunting gear cannot be accomplished without the supporting tasks of Materials Management and meals for production employees provided by the Cafeteria. Cafeteria costs are always higher than Materials Management costs. The company believes that the number of employees in each department is the best driver of Cafeteria costs. The number of employees in each department is as follows: Molding Department Finishing Department Materials Management Department Cafeteria Department 27 30 3 6 0 B Up The company also believes that the value of support materials used in each department is the best driver for Materials Management costs. The support materials used in the Molding and Finishing departments are valued at $1,800 and $2,700, respectively. Using the sequential method for support department cost allocation (allocating Cafeteria costs first): a. Determine the percentage of Cafeteria costs that should be allocated to the Molding Department. % b. Determine the percentage of Materials Management costs that should be allocated to the Finishing Department. %
eBook Show Me How Support Department Cost Allocation-Sequential Method Bucknum Boys, Inc., produces hunting gear for buck hunting. The company's main production departments are Molding and Finishing. Production of the hunting gear cannot be accomplished without the supporting tasks of Materials Management and meals for production employees provided by the Cafeteria. Cafeteria costs are always higher than Materials Management costs. The company believes that the number of employees in each department is the best driver of Cafeteria costs. The number of employees in each department is as follows: Molding Department Finishing Department Materials Management Department Cafeteria Department 27 30 3 6 0 B Up The company also believes that the value of support materials used in each department is the best driver for Materials Management costs. The support materials used in the Molding and Finishing departments are valued at $1,800 and $2,700, respectively. Using the sequential method for support department cost allocation (allocating Cafeteria costs first): a. Determine the percentage of Cafeteria costs that should be allocated to the Molding Department. % b. Determine the percentage of Materials Management costs that should be allocated to the Finishing Department. %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Molding Department
Finishing Department
Materials Management Department
Cafeteria Department
Support Department Cost Allocation-Sequential Method
Bucknum Boys, Inc., produces hunting gear for buck hunting. The company's main production departments are Molding and Finishing. Production of the hunting gear
cannot be accomplished without the supporting tasks of Materials Management and meals for production employees provided by the Cafeteria. Cafeteria costs are always
higher than Materials Management costs. The company believes that the number of employees in each department is the best driver of Cafeteria costs. The number of
employees in each department is as follows:
27
30
3
6
=false
a. Determine the percentage of Cafeteria costs that should be allocated to the Molding Department.
%
eck My Work 2 more Check My Work uses remaining.
The company also believes that the value of support materials used in each department is the best driver for Materials Management costs. The support materials used in
the Molding and Finishing departments are valued at $1,800 and $2,700, respectively. Using the sequential method for support department cost allocation (allocating
Cafeteria costs first):
✩ = 0 B Upc
b. Determine the percentage of Materials Management costs that should be allocated to the Finishing Department.
%
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