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Martay Creations produces winter scarves. The scarves are produced in the Cutting and Sewing departments. The Maintenance and Security departments support these production departments, and allocate costs based on machine hours and square feet, respectively. Information about each department is provided in the following table: Number of Employees Total Cost Department Maintenance Department. Security Department Cutting Department 21,200 Sewing Department. 24,900 Using the sequential method and allocating the support department with the highest costs first, allocate all support department costs to the production departments. Then compute the total cost of each production department. $2,200 4,500 5 3 21 19 Machine Hours Square Feet 40 600 500 2,400 3,000 Sewing Cutting Department Department Production departments total costs $ 26,055 X $ 27,845 x 0 3,600 5,400

Martay Creations produces winter scarves. The scarves are produced in the Cutting and Sewing departments. The Maintenance and Security departments support these production departments, and allocate costs based on machine hours and square feet, respectively. Information about each department is provided in the following table: Number of Employees Total Cost Department Maintenance Department. Security Department Cutting Department 21,200 Sewing Department. 24,900 Using the sequential method and allocating the support department with the highest costs first, allocate all support department costs to the production departments. Then compute the total cost of each production department. $2,200 4,500 5 3 21 19 Machine Hours Square Feet 40 600 500 2,400 3,000 Sewing Cutting Department Department Production departments total costs $ 26,055 X $ 27,845 x 0 3,600 5,400

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Support department cost allocation-sequential method Martay Creations produces winter scarves. The scarves are produced in the Cutting and Sewing departments. The Maintenance and Security departments support these production departments, and allocate costs based on machine hours and square feet, respectively. Information about each department is provided in the following table: Number of Employees Total Cost Department Maintenance Department Security Department Cutting Department Sewing Department Using the sequential method and allocating the support department with the highest costs first, allocate all support department costs to the production departments. Then compute the total cost of each production department. $2,200 4,500 21,200 24,900 Cutting Department 5 3 21 19 Machine Hours 40 0 Sewing Department Production departments' total costs $26,055 X $ 27,845 X Square Feet 600 500 3,600 5,400 2,400 3,000
Transcribed Image Text:Support department cost allocation-sequential method Martay Creations produces winter scarves. The scarves are produced in the Cutting and Sewing departments. The Maintenance and Security departments support these production departments, and allocate costs based on machine hours and square feet, respectively. Information about each department is provided in the following table: Number of Employees Total Cost Department Maintenance Department Security Department Cutting Department Sewing Department Using the sequential method and allocating the support department with the highest costs first, allocate all support department costs to the production departments. Then compute the total cost of each production department. $2,200 4,500 21,200 24,900 Cutting Department 5 3 21 19 Machine Hours 40 0 Sewing Department Production departments' total costs $26,055 X $ 27,845 X Square Feet 600 500 3,600 5,400 2,400 3,000
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