Business, 05.03.2020 02:20 flowergirly34

Support Department Cost Allocation—Direct 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 non production 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 32 and 48 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: Maintenance Department $6,000 Janitorial Department 3,000 Cutting Department 53,000 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.

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Support Department Cost Allocation—Direct Method Christmas Timber, Inc., produces Christmas trees. T...

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