# Support Department Cost AllocationJohnson Company produced chemical products. Janitorial andmaintenance support department costs are allocated to themixing and blending production departments based on squarefootage (janitorial) and machine hours (maintenance),respectively. Relevant department data is as follows:JanitorialMaintenanceMixingBlendingDepartment\$18,000Cost\$12,000\$52,000\$63,000Squarefootage1,0003,000Machine Hours5001,000Using the direct method of support department cost allocation,determine the total cost of the Mixing and Blending departmentsafter allocating all support costs to the production departments.Joint Cost AllocationAnderson Company makes three types of paint products: base,primer and paint. All products go through a joint mixingprocess which produces 8,000 gallons of base, 6,000 gallons ofprimer and 4,000 gallons of paint at a joint cost of \$10,000. Inaddition, the mixing process for primer is two times longer thanfor base, and the mixing process for paint is three times longerthan for base.1. Allocate the joint cost of production of \$10,000 to eachproduct using the weighted average method.2. Assuming the market price at the split of point for base is\$3 per gallon, primer is \$4 per gallon and paint is \$8 pergallon, use the market value at split-off to allocate the\$10,000 of joint production costs.3. Analyze the differences in the methods used in #1 and #2above. What are the reasons for the difference? Whenwould each method be most appropriate to use?

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Can you please assist with questions 1-3? Thank you.

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Step 1

1. Compute the allocation of joint cost of production for three paint products using weighted average method as shown below:

Calculation formulas:

Step 2

2. Compute the allocation of joint production cost using market value at split-off point as shown below:

Calculation formulas:

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