Support department cost allocation—sequential method Crystal Scarves & Co. produces winter scarves. The scarves are produced in the Cutting and Sewing departments. The Maintenance and Security departments support these production departments, and allocate costs based on machine hours and square feet, respectively. 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                     0           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 costs to the production departments. Then compute the total cost of each production department.   CuttingDepartment   SewingDepartment Production departmentsʼ total costs $   $

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Support department cost allocation—sequential method

Crystal Scarves & Co. produces winter scarves. The scarves are produced in the Cutting and Sewing departments. The Maintenance and Security departments support these production departments, and allocate costs based on machine hours and square feet, respectively. 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                     0           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 costs to the production departments. Then compute the total cost of each production department.

  Cutting
Department
  Sewing
Department
Production departmentsʼ total costs $   $
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