Support Department Cost AllocationDirect Method Christmas Timber, Inc., produces Christmas trees. The...
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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: Line Item Description Amount Maintenance Department $ Janitorial Department Cutting Department Pruning Department 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.
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:
Line Item Description Amount
Maintenance Department $
Janitorial Department
Cutting Department
Pruning Department
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.
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