Support Department Cost Allocation-Direct Method Christmas Timber, Inc., produces Christmas trees....
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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 and trees, respectively, in them at time. The company also estimates that the cutting process requires about times as many machine hours as the pruning process. The total costs of each department are as follows:
tableMaintenance Department,$
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