Support department cost allocation—direct methodBecker 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 DriverJanitorial Department Square footage to be servicedCafeteria Department Number of employees JanitorialDepartmentCafeteriaDepartmentCuttingDepartmentAssemblyDepartmentDepartment costs$290,000 $170,000 $1,510,000 $670,000 Square feet48 4,500 800 3,200 Number of employees10 2 21 9 Allocate the support department costs to the production departments using the direct method. CuttingDepartment AssemblyDepartment Janitorial Department cost allocation$ $Cafeteria Department cost allocation$ $

Hence, the Janitorial department cost which is allocated to cutting department costs is $58,000. The…

Answered: Support department cost…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter5: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 8E

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Support department cost allocation—direct method

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

	Janitorial Department	Cafeteria Department	Cutting Department	Assembly Department
Department costs	$290,000	$170,000	$1,510,000	$670,000
Square feet	48	4,500	800	3,200
Number of employees	10	2	21	9

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

	Cutting Department	Assembly Department
Janitorial Department cost allocation	$	$
Cafeteria Department cost allocation	$	$

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