Support Department Cost Allocation-Direct Method Charlie's Wood Works produces wood products (e.g., cabinets, tables, picture frames, and so on). Production departments include Cutting and Assembly. The Janitorial and Security departments support the Cutting and Assembly departments. The Assembly Department spans about 43,200 square feet and holds assets valued at about $65,400. The Cutting Department spans about 36,800 square feet and holds assets valued at about $152,600. Charlie's Wood Works allocates support department costs using the direct method. If costs from the Janitorial Department are allocated based on square feet and costs from the Security Department are allocated based on asset value. a. Determine the percentage of Janitorial costs that should be allocated to the Assembly Department. b. Determine the percentage of Security costs that should be allocated to the Cutting Department.
Support Department Cost Allocation-Direct Method Charlie's Wood Works produces wood products (e.g., cabinets, tables, picture frames, and so on). Production departments include Cutting and Assembly. The Janitorial and Security departments support the Cutting and Assembly departments. The Assembly Department spans about 43,200 square feet and holds assets valued at about $65,400. The Cutting Department spans about 36,800 square feet and holds assets valued at about $152,600. Charlie's Wood Works allocates support department costs using the direct method. If costs from the Janitorial Department are allocated based on square feet and costs from the Security Department are allocated based on asset value. a. Determine the percentage of Janitorial costs that should be allocated to the Assembly Department. b. Determine the percentage of Security costs that should be allocated to the Cutting Department.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter5: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 1BE: Charlies Wood Works produces wood products (e.g., cabinets, tables, picture frames, and so on)....
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![Support Department Cost Allocation-Direct Method:
Charlie's Wood Works produces wood products (e.g., cabinets, tables, picture frames, and so on). Production departments include Cutting and Assembly. The Janitorial
and Security departments support the Cutting and Assembly departments. The Assembly Department spans about 43,200 square feet and holds assets valued at about
$65,400. The Cutting Department spans about 36,800 square feet and holds assets valued at about $152,600. Charlie's Wood Works allocates support department costs
using the direct method. If costs from the Janitorial Department are allocated based on square feet and costs from the Security Department are allocated based on asset
value.
a. Determine the percentage of Janitorial costs that should be allocated to the Assembly Department.
b. Determine the percentage of Security costs that should be allocated to the Cutting Department.
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa9d0517d-085e-40c6-8139-62d7919f2ba7%2F569f774c-76dd-468c-9411-b1564741bbbc%2F0366fy_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Support Department Cost Allocation-Direct Method:
Charlie's Wood Works produces wood products (e.g., cabinets, tables, picture frames, and so on). Production departments include Cutting and Assembly. The Janitorial
and Security departments support the Cutting and Assembly departments. The Assembly Department spans about 43,200 square feet and holds assets valued at about
$65,400. The Cutting Department spans about 36,800 square feet and holds assets valued at about $152,600. Charlie's Wood Works allocates support department costs
using the direct method. If costs from the Janitorial Department are allocated based on square feet and costs from the Security Department are allocated based on asset
value.
a. Determine the percentage of Janitorial costs that should be allocated to the Assembly Department.
b. Determine the percentage of Security costs that should be allocated to the Cutting Department.
%
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