6 Support department cost allocation-sequential method Crystal Scarves & Co. produces winter scarves. The scarves...
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6 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 57 800 Security Department 3,000 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 Sewing Department Department 4 0 600 $ Production departments total costs
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