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 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 7 and 63 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 Janitorial Department Cutting Department Pruning Department $9,000 4,000 56,000 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. Cutting Department Pruning Department Production departments' total costs $ 62,770 X $

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 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 7 and 63 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 Janitorial Department Cutting Department Pruning Department $9,000 4,000 56,000 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. Cutting Department Pruning Department Production departments' total costs $ 62,770 X $

Name: Support Department Cost Allocation-Direct MethodChristmas Timber, Inc
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Description: Support Department Cost Allocation-Direct MethodChristmas Timber, Inc., produces Christmas trees. The trees are produced through a cutting and pruning process. Machine maintenance and janitorial labors are performed throughout theproduction process

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 4E: Christmas Timber, Inc., produces Christmas trees. The trees are produced through a cutting and...

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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 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 $7,000 Janitorial Department 4,000 Cutting Department 52,000 Pruning Department 8,000 Using the direct method of support department cost allocation, determine the total cost of each production department after allocating all support costs to the…
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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 7 and 63 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: Line Item Description Amount Maintenance Department $7,000 Janitorial Department 6,000 Cutting Department 56,000 Pruning Department 13,000 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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