Please answer both the question please answer within the format by providing formula the detailed working Please provide answer in text (Without image) Please provide answer in text (Without image) Please provide answer in text (Without image)       1.) 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 24 and 36 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 4,000 Cutting Department 57,000 Pruning Department 10,000 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 Cutting Department Pruning Department Production departmentsʼ total costs       2.) Becker Tabletops has two support departments (Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevant details for these departments are as follows: Support Department Cost Driver Janitorial Department Square footage to be serviced Cafeteria Department Number of employees Line Item Description Janitorial Department Cafeteria Department Cutting Department Assembly Department Department costs $300,000    $160,000 $1,490,000    $670,000 Square feet 48 5,300 1,200 4,800 Number of employees 10 3    54 6    Allocate the support department costs to the production departments using the direct method. Line Item Description Cutting Department Assembly Department Janitorial Department cost allocation     Cafeteria Department cost allocation

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Please answer both the question

please answer within the format by providing formula the detailed working
Please provide answer in text (Without image)
Please provide answer in text (Without image)
Please provide answer in text (Without image)

 

 

 

1.) 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 24 and 36 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 4,000
Cutting Department 57,000
Pruning Department 10,000

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 Cutting
Department
Pruning
Department
Production departmentsʼ total costs    

 

2.) Becker Tabletops has two support departments (Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevant details for these departments are as follows:

Support Department Cost Driver
Janitorial Department Square footage to be serviced
Cafeteria Department Number of employees
Line Item Description Janitorial
Department
Cafeteria
Department
Cutting
Department
Assembly
Department
Department costs $300,000    $160,000 $1,490,000    $670,000
Square feet 48 5,300 1,200 4,800
Number of employees 10 3    54 6   

Allocate the support department costs to the production departments using the direct method.

Line Item Description Cutting
Department
Assembly
Department
Janitorial Department cost allocation    
Cafeteria Department cost allocation
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Cost classification
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education