Charlie's Wood Works produces wood products (e.g., cabinets, tables, picture frames, and so on). Production...
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Charlie's Wood Works produces wood products (e.g., cabinets, tables, picture frames, and so on). Production departments include Cutting and Assembly. The Janitorial and Security departments support the Cutting and Assembly departments. The Assembly Department spans about 51,200 square feet and holds assets valued at about $67,840. The Cutting Department spans about 28,800 square feet and holds assets valued at about $144,160. Charlie's Wood Works allocates support department costs using the direct method. If costs from the Janitorial Department are allocated based on square feet and costs from the Security Department are allocated based on asset value. a. Determine the percentage of Janitorial costs that should be allocated to the Assembly Department. b. Determine the percentage of Security costs that should be allocated to the Cutting Department. Yo-Down Inc. produces yogurt. Information related to the company's yogurt production follows: Production Production Production Department 1 Department 2 Department 3 Support Department 1 cost driver 3,000 900 2,100 Support Department l's costs total $140,000. Using the direct method of support department cost allocation, determine the costs from Support Department 1 that should be allocated to each production department. Production Department 1 Production Department 2 Production Department 3 Support Department 1 cost allocation 57 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 $ 2,300 800 Security Department 3,000 600 Cutting Department 19,600 3,700 3,200 Sewing Department 20,800 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 Production departments total costs $ $
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