port department cost allocation-sequential method stal Scarves & Co. produces winter scarves. The scarves are produced in the Cutting and Sewing departments. The M ecurity departments support these production departments, and allocate costs based on machine hours and square feet nformation about each department is provided in the following table: Number of Employees Machine Hours Square Feet Department Maintenance Department Total Cost 57 800 $ 2,300 6. 600 4 3,000 Security Department 3,200 20 3,700 19,600 Cytting Department 5,550 4,000 20.800 18 allorate all support departme

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Sequential method?

apport department cost allocation-sequential method
rystal Scarves & Co. produces winter scarves. The scarves are produced in the Cutting and Sewing departments. The Mainten
Security departments support these production departments, and allocate costs based on machine hours and square feet, respe
Information about each department is provided in the following table:
Department
Total Cost
Number of Employees
Machine Hours
Square Feet
Maintenance Department
$ 2,300
6.
57
800
Security Department
3,000
4
600
Cutting Department
19,600
20
3,700
3,200
Sewing Department
20,800
18
5,550
4,000
Using the sequential method and allocating the support department with the highest costs first, allocate all support department cost
the production departments. Then compute the total cost of each production department.
Cutting
Sewing
Department
Department
1,524.4 X
1,936. Х
Production departments' total costs $
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support department to the other support departments and to the production departments. A second support department is then
selected and its costs are allocated to the remaining support departments and to the production departments. Under this
The sequential method considers some inter-support-department services. It does this by first allocating costs from one
method, support department costs are never allocated back to the support department whose costs have already been
allocated. The order in which support department costs are allocated under the sequential method is important.
Previous
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Transcribed Image Text:apport department cost allocation-sequential method rystal Scarves & Co. produces winter scarves. The scarves are produced in the Cutting and Sewing departments. The Mainten Security departments support these production departments, and allocate costs based on machine hours and square feet, respe Information about each department is provided in the following table: Department Total Cost Number of Employees Machine Hours Square Feet Maintenance Department $ 2,300 6. 57 800 Security Department 3,000 4 600 Cutting Department 19,600 20 3,700 3,200 Sewing Department 20,800 18 5,550 4,000 Using the sequential method and allocating the support department with the highest costs first, allocate all support department cost the production departments. Then compute the total cost of each production department. Cutting Sewing Department Department 1,524.4 X 1,936. Х Production departments' total costs $ Feedback Check My Work support department to the other support departments and to the production departments. A second support department is then selected and its costs are allocated to the remaining support departments and to the production departments. Under this The sequential method considers some inter-support-department services. It does this by first allocating costs from one method, support department costs are never allocated back to the support department whose costs have already been allocated. The order in which support department costs are allocated under the sequential method is important. Previous 9:53 AM 11/16/2020 Check My Work 2 more Check My Work uses remaining. %24
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The sequential method refers to the process of allocating the cost of service departments to other departments within an organization at a point of time. It is also called as step allocation method as cost is allocated on step by step basis to each department.

 

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