Support department cost allocation—direct 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 Cost Driver Janitorial Department Square footage to be serviced Cafeteria Department Number of employees Janitorial Department Cafeteria Department Cutting Department Assembly Department Department costs $280,000 $190,000 $1,490,000 $670,000 Square feet 46 4,700 1,500 3,500 Number of employees 12 2 18 2 Allocate the support department costs to the production departments using the direct method. Cutting Department Assembly Department Janitorial Department cost allocation Cafeteria Department cost allocation
Support department cost allocation—direct 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 Cost Driver Janitorial Department Square footage to be serviced Cafeteria Department Number of employees Janitorial Department Cafeteria Department Cutting Department Assembly Department Department costs $280,000 $190,000 $1,490,000 $670,000 Square feet 46 4,700 1,500 3,500 Number of employees 12 2 18 2 Allocate the support department costs to the production departments using the direct method. Cutting Department Assembly Department Janitorial Department cost allocation Cafeteria Department cost allocation
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Support department cost allocation—direct 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 | Cost Driver | |
| Janitorial Department | Square footage to be serviced | |
| Cafeteria Department | Number of employees |
| Janitorial Department |
Cafeteria Department |
Cutting Department |
Assembly Department |
|
| Department costs | $280,000 | $190,000 | $1,490,000 | $670,000 |
| Square feet | 46 | 4,700 | 1,500 | 3,500 |
| Number of employees | 12 | 2 | 18 | 2 |
Allocate the support department costs to the production departments using the direct method.
| Cutting Department |
Assembly Department |
||
| Janitorial Department cost allocation | |||
| Cafeteria Department cost allocation |
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