Support department cost allocation-sequential 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 Janitorial Department Cafeteria Department Department costs Square feet Number of employees Janitorial Department Cafeteria Department Cost Driver Square footage to be serviced Number of employees Cafeteria Department $169,000 5,000 1,000 3 30 Allocate the support department costs to the production departments using the sequential method. Allocate the support department with the highest department cost first. Feedback Janitorial Department $310,000 50 10 Cutting Department X X Cutting Department $1,504,000 $ Assembly Department X Assembly Department $680,000 4,000 10 X Check My Work The sequential method considers some inter-support-department services. It does this by first allocating costs from one support department to the
Support department cost allocation-sequential 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 Janitorial Department Cafeteria Department Department costs Square feet Number of employees Janitorial Department Cafeteria Department Cost Driver Square footage to be serviced Number of employees Cafeteria Department $169,000 5,000 1,000 3 30 Allocate the support department costs to the production departments using the sequential method. Allocate the support department with the highest department cost first. Feedback Janitorial Department $310,000 50 10 Cutting Department X X Cutting Department $1,504,000 $ Assembly Department X Assembly Department $680,000 4,000 10 X Check My Work The sequential method considers some inter-support-department services. It does this by first allocating costs from one support department to the
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Support department cost allocation-sequential 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
Janitorial Department
Cafeteria Department
Department costs
Square feet
Number of employees
Janitorial Department
Cafeteria Department
Cost Driver
Square footage to be serviced
Number of employees
Feedback
Janitorial
Department
$310,000
50
10
Cafeteria
Department
$169,000
5,000
3
Allocate the support department costs to the production departments using the sequential method. Allocate the support department with the highest
department cost first.
Cutting
Department
X
X
Cutting
Department
$1,504,000
$
1,000
30
Assembly
Department
X
Assembly
Department
$680,000
4,000
10
X
Check My Work
The sequential method considers some inter-support-department services. It does this by first allocating costs from one support department to the
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