Support Department Cost Allocation-Direct Method Christmas Timber, Inc, produces Christmas trees. The trees are produced...
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Support Department Cost Allocation-Direct Method Christmas Timber, Inc, produces Christmas trees. The trees are produced through a cutting and pruning processi Machine maintenance and janitorial labors are performed throuphout the production process by nooproduction employes. Maintenance and janitorial costs are allocated bosed on machine hours used and the number of trees in eac degartment, respectively. The company estimates that the cutting and pruning areas typically have about 20 and 60 trees, respectively, in them at one time, The company also estimates that the cunting process requires about 9 times as many mochine hours as the pruning process. The total costs of each department are as follows: Using the direct inethod of support deparment cost allocation, determine the total cont of each production department after allocating all support costs to the prodiction departments
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