Support Department Cost AllocationDirect Method Christmas Timber, Inc., produces Christmas trees. The trees are produced...
90.2K
Verified Solution
Link Copied!
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 14 and 56 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
$6,000
Janitorial Department
3,000
Cutting Department
56,000
Pruning Department
13,000
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.
Line Item Description
CuttingDepartment
PruningDepartment
Production departments total costs
$fill in the blank 1
$fill in the blank 2
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: Flex AI - Your personal assistant for all your inquiries!
