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$310,000 $200,000 $1,480,000 $660,000 Square feet50 4,600 2,000 3,000 Number of employees12 3 28 12 Allocate the support department costs to the production departments using the direct method. CuttingDepartment AssemblyDepartment Janitorial Department cost allocation$fill in the blank 1 $fill in the blank 2Cafeteria Department cost allocation$fill in the blank 3 $fill in the blank 4

Solution: Janitorial Cafeteria Cutting Assembly Support department costs 310000 200000…

Answered: Janitorial Department Cafeteria…

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	$310,000	$200,000	$1,480,000	$660,000
Square feet	50	4,600	2,000	3,000
Number of employees	12	3	28	12

Allocate the support department costs to the production departments using the direct method.

	Cutting Department	Assembly Department
Janitorial Department cost allocation	$fill in the blank 1	$fill in the blank 2
Cafeteria Department cost allocation	$fill in the blank 3	$fill in the blank 4

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