Support department cost allocation-sequential method Crystal Scarves & Co. produces winter scarves. The scarves are produced in the Cutting and Sewing departments. The Maintenance and Security departments support these production departments, and allocate costs based on machine hours and square feet, respectively. Information about each department is provided in the following tabie: Department Total Cost Number of Employees Machine Hours Square Feet Maintenance Department $ 2,300 6 57 800 Security Department 3,000 4 600 Cutting Department 19,600 20 3,700 3,200 20,800 18 5,550 4,000 Sewing Department Using the sequential method and allocating the support department with the highest costs first, allocate all support department costs to the production departments. Then compute the total cost of each production department.

Support department cost allocation-sequential method Crystal Scarves & Co. produces winter scarves. The scarves are produced in the Cutting and Sewing departments. The Maintenance and Security departments support these production departments, and allocate costs based on machine hours and square feet, respectively. Information about each department is provided in the following tabie: Department Total Cost Number of Employees Machine Hours Square Feet Maintenance Department $ 2,300 6 57 800 Security Department 3,000 4 600 Cutting Department 19,600 20 3,700 3,200 20,800 18 5,550 4,000 Sewing Department Using the sequential method and allocating the support department with the highest costs first, allocate all support department costs to the production departments. Then compute the total cost of each production department.

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 5E: Crystal Scarves Co. produces winter scarves. The scarves are produced in the Cutting and Sewing...

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I need help with the following: Support department cost allocation—reciprocal services method Davis Snowflake & Co. produces Christmas stockings in its Cutting and Sewing departments. The Maintenance and Security departments support the production of the stockings. Costs from the Maintenance Department are allocated based on machine hours, and costs from the Security Department are allocated based on asset value. Information about each department is provided in the following table: MaintenanceDepartment SecurityDepartment CuttingDepartment SewingDepartment Machine hours 800 2,000 6,400 11,600 Asset value $2,000 $1,420 $1,500 $6,500 Department cost $36,720 $16,320 $64,000 $84,000 Determine the total cost of each production department after allocating all support department costs to the production departments using the reciprocal services method. CuttingDepartment SewingDepartment…
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