Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. support department cost allocationdirect method

Support Department Cost AllocationDirect Method Christmas Timber, Inc., produces...

60.1K

Verified Solution

Question

Accounting

Support Department Cost AllocationDirect Method
Christmas Timber, Inc., produces Christmas trees. The trees are produced through a cutting and pruning process. Machine maintenance and janitorial labors are performed throughout the production process by nonproduction employees. Maintenance and janitorial costs are allocated based on machine hours used and the number of trees in each department, respectively. The company estimates that the cutting and pruning areas typically have about 28 and 42 trees, respectively, in them at 1 time. The company also estimates that the cutting process requires about 9 times as many machine hours as the pruning process. The total costs of each department are as follows:
Line Item Description Amount
Maintenance Department $9,000
Janitorial Department 6,000
Cutting Department 53,000
Pruning Department 11,000
Using the direct method of support department cost allocation, determine the total cost of each production department after allocating all support costs to the production departments.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

2 2 Ex 5y 1 We consider equation E xyEN We Suppose that xy is...

Calculus
Q

A study of the relationship between facility conditions at gas stations and aggressiveness in the pricing...

Statistics
Q

I'm confused on how bonding works with metalloids. Will it be an ionic or covalent bond?...

Chemistry
Q

Topic 1 (Note: Briefly in your own words 1 paragraph minimum, use and attach reference.) Accounting Practices: Using reading...

Accounting
Q

Describe any phase shift and vertical shift in the graph.y = 3 cos (x +...

Geometry
Q

required: calculate the stamp duty payable in new south wales on the following transactions: (a)...

Accounting
Q

Accounting
Q

The following information describes a companys usage of direct labor in a recent period: Actual...

Accounting
Q

Question 5 (1 point) Davis Company has a December 31 year end. The company received...

Accounting
Q

True-False Questions If a bank pays a stale check in good faith without consulting...

Accounting
Q

Robin Company reported the following costs for the curingt month What is Robin's total manufacturing...

Accounting
Q

Which of the following costs will be the same no matter whether a company uses...

Accounting