Business, 10.06.2020 02:57 austintules2005

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 6 and 54 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 $7,800
Janitorial Department 5,000
Cutting Department 54,500
Pruning Department 11,000

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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Christmas Timber, Inc., produces Christmas trees. The trees are produced through a cutting and pruni...

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