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 24 and 56 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 5,000 Cutting Department 51,000 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 production departments.   CuttingDepartment   PruningDepartment Production departmentsʼ total costs $   $

Christmas Timber, Inc., produces Christmas trees. The trees areproduced through a cutting and pruning process. Machine maintenanceand janitorial labors are performed throughout the production processby nonproduction employees. Maintenance and janitorial costs areallocated based on machine hours used and the number of trees in each department, respectively. The company estimates that the cutting andpruning areas typically have about 20 and 60 trees, respectively, in themat one time. The company also estimates that the cutting processrequires about 9 times as many machine hours as the pruning process.The total costs of each department are as follows: Maintenance DepartmentJanitorial DepartmentCutting DepartmentPruning Department $ 7,8005,00054,50011,000 Using the direct method of support department cost allocation,determine the total cost of each production department after allocatingalI support costs to the production departments.

Activity Rates and Product Costs using Activity-Based Costing Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Activity Casting Assembly Inspecting Setup Materials handling Activity Base Machine hours Direct labor hours Number of inspections Number of setups Number of loads Units produced Budgeted Activity Cost Activity Base Corporate records were obtained to estimate the amount c activity to be used by the two products. The estimated activity-base usage quantities and units produced follow: Entry Dining Total 5,440 4,830 10,270 4,680 7,030 11,710 1,870 590 2,460 270 810 10,800 Activity Casting Assembly Inspecting Setup Materials handling a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Activity Rate $ $ $ $225,940 Machine hours 222,490 39,360 46,860 50,470 $ Direct…

Multiple Production Department Factory Overhead Rate Method Performance Gloves, Inc. produces three sizes of sports gloves: small, medium, and large. A glove pattern is first stenciled onto leather in the Pattern Department. The stenciled patterns are then sent to the Cut and Sew Department, where the glove is cut and sewed together. Performance Gloves uses the multiple production department factory overhead rate method of allocating factory overhead costs. Its factory overhead costs were budgeted as follows: Pattern Department overhead $93,500   Cut and Sew Department overhead 153,300     Total $246,800   The direct labor estimated for each production department was as follows: Pattern Department 1,700 direct labor hours Cut and Sew Department 2,100     Total 3,800 direct labor hours Direct labor hours are used to allocate the production department overhead to the products. The direct labor hours per unit for each product for each production department were…