ipboardFontParagraphStyles2.3.Use the following table to allocate the support cost departments. Round allocated amounts to the nearest whole dollar. If an amount is zero, enter "0".Support DepartmentsProduction DepartmentsMaintenanceAdministrationLog YardMillingDryingPackagingHours worked11,000 V9,720 v8,100 V25,92016,200V21,060Number of employees4.4.10128.Department cost193,600 VS237,900340,950521,400476,450246,400Maintenance259,600 XAdministrationFinal department costsFeedbackPage 1 of 1wordmO TyeTOSHIB ForestLand Wood Products manufactures lumber and wood components. The company has two main product lines: Hardwood and Softwood. Hardwoods are used for flooring, cabinetry, paneling,doors and trimwork. Softwoods are used for wall studs, joists, planks, rafters, beams, stringers, posts, decking, subflooring and concrete forms. ForestLand also sells a by-product, wood shavingsand saw dust. Shavings are purchased for farm and industrial use as well as for further processing into wood pellets and fiber board. The revenue is allocated to each product line based on thepercentage of thousand board feet produced by the product line.Your accounting firm has been retained by Forestland for three years. You have been assigned to properly allocate support department costs. Your manager wants the allocation to be as accurate aspossible and has instructed you to use the reciprocal services method. She reminds you that revenue from by-products are used to offset costs.You begin your research and learn that there are four production departments: log vard, milling, drving, and packaging, The Hardwood line produces 300 thousand board feet of product while theSoftwood produces 900 thousand board feet. The milling department direct costs, direct labor and overhead per thousand board feet for Hardwood is two times that of Softwood. You have beeninstructed to use the weighted average method to allocate the costs in the milling department between the two product lines. The remaining department costs are the same for both product lines,per thousand board feet.There are two support departments: maintenance and administration. The maintenance department is responsible for maintaining all equipment and janitorial duties. Because the equipment is usedmore extensively for hardwoods, the department cost driver is hours worked. The administration department includes the company president and his staff. Their duties include accounting, humanresources, and information technology. The cost driver for the administration department is number of employees.In your first step, you determine the costs traced to each department and the usage of the support department cost drivers. You have created the following table:MaintenanceAdministrationLog YardMillingDryingPackaging11,0009,7208,10025,92016,20021,060Hours worked4101284Number of employees$237,900$340,950$521,400$476,450$246,400Department costs$193,600Your next step is to determine the proportional usage of each support department's cost driver by the other departments to which its costs are to be allocated. Complete the foflowing tabies.MaintenanceESC

Cost allocation is a method of delivering assistance to the cost centres of a shared service…

Use the following table to allocate the support cost departments. Round allocated amounts to the nearest whole dollar. If an amount is zero, enter "0". Production Departments Support Departments Log Yard Milling Drying Packaging Maintenance Administration 8,100 V 25,920 V 16,200 V 21,060 11,000V 9,720 Hours worked 10 12 6. Number of employees 246,400 340,950 521,400 476,450 24 193,600 237,900 Department cost Maintenançe 259,600 Administration Final department costs

Use the following table to allocate the support cost departments. Round allocated amounts to the nearest whole dollar. If an amount is zero, enter "0". Production Departments Support Departments Log Yard Milling Drying Packaging Maintenance Administration 8,100 V 25,920 V 16,200 V 21,060 11,000V 9,720 Hours worked 10 12 6. Number of employees 246,400 340,950 521,400 476,450 24 193,600 237,900 Department cost Maintenançe 259,600 Administration Final department costs

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 1BE: Charlies Wood Works produces wood products (e.g., cabinets, tables, picture frames, and so on)....

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