Support department cost allocation-sequential methodBecker Tabletops has two support departments (Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevant details for thesedepartments are as follows:Support DepartmentCost DriverJanitorial DepartmentSquare footage to be servicedCafeteria DepartmentNumber of employeesJanitorialCafeteriaCuttingAssemblyDepartmentDepartmentDepartmentDepartmentDepartment costs$310,000$169,000$1,504,000$680,000Square feetNumber of employees505,0001,0004,000103010Allocate the support department costs to the production departments using the sequential method.Allocate the support department with the highest department cost first.CuttingAssemblyDepartmentDepartmentJanitorial DepartmentCafeteria Department

Support department cost allocation-sequentlal methou 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 Cafeterla Cutting Assembly Department Department Department Department $680,000 $169,000 5,000 Department costs $310,000 $1,504,000 Square feet Number of employees 50 1,000 4,000 10 30 10 Allocate the support department costs to the production departments using the sequential method. Allocate the support department with the highest department cost first. Cutting Assembly Department Department Janitorial Department Cafeteria Department

Support department cost allocation-sequentlal methou 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 Cafeterla Cutting Assembly Department Department Department Department $680,000 $169,000 5,000 Department costs $310,000 $1,504,000 Square feet Number of employees 50 1,000 4,000 10 30 10 Allocate the support department costs to the production departments using the sequential method. Allocate the support department with the highest department cost first. Cutting Assembly Department Department Janitorial Department Cafeteria Department

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 Blue Mountain Masterpieces produces pictures, paintings, and other home decor. The Printing and Framing production departments are supported by the Janitorial and Security departments. Janitorial costs are allocated to the production departments based on square feet, and security costs are allocated based on asset value. Information about these departments is detailed in the following table: Square feet Asset value Janitorial Department 760 $900 $5,200 Security Department 1,040 $1,240 $6,600 a. Direct cost allocation. method. b. Sequential cost allocation method. c. Reciprocal cost allocation method. d. None of the above. d X Printing Department 4,230 $12,390 $33,000 Framing Department 4,770 $8,610 $29,000 Department cost Management has experimented with different support department cost allocation methods in the past. The different allocation methods did not yield large differences of cost allocation to the production departments. 1. Determine which…
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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 Janitori and Security departments support the Cutting and Assembly departments. The Assembly Department spans about 50,400 square feet and holds assets valued at abo $88,000. The Cutting Department spans about 33,600 square feet and holds assets valued at about $132,000. Charlie's Wood Works allocates support department ce 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 a 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—Reciprocal Services Method Blue Africa Inc. produces laptops and desktop computers. The company’s production activities mainly occur in what the company calls its Laser and Forming departments. The Cafeteria and Security departments support the company’s production activities and allocate costs based on the number of employees and square feet, respectively. The total cost of the Security Department is $252,000. The total cost of the Cafeteria Department is $778,000. The number of employees and the square footage in each department are as follows: Employees Square Feet Security Department 10 540 Cafeteria Department 26 2,400 Laser Department 40 4,800 Forming Department 50 800 Using the reciprocal services method of support department cost allocation, determine the total costs from the Security Department that should be allocated to the Cafeteria Department and to…
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