Maintenance Department Janitorial Department $ 7,800 5,000 Cutting Department Pruning Department 54,500 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.

Carson Paint Company, which manufactures quality paint to sell at premium prices, uses a single production department. Production begins by blending the various chemicals that are added at the beginning of the process and ends by filling the paint cans. The gallon cans are then transferred to the shipping department for crating and shipment. Direct labor and overhead are added continuously throughout the process. Factory overhead is applied at the rate of $3 per direct labor dollar. The company combines direct labor and overhead in computing product cost. Prior to May, when a change in the manufacturing process was implemented, Work - in - Process Inventories were insignificant. The changed manufacturing process, which has resulted in increased equipment capacity, allows increased production but also results in considerable amounts of Work-in - Process Inventory. Also, the company had 1,000 spoiled gallons in May-one-half of which was normal spoilage and the rest abnormal spoilage. The…

Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below. Number of Direct Labor Hours Per Unit Product Units Blinks Dinks 1,101 2,269 3 4 Machine Hours Per Unit 8 5 All of the machine hours take place in the Fabrication department, which has an estimated overhead of $80,200. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $102,700. Ramapo Company uses a single plantwide overhead rate to apply all factory overhead costs based on direct labor hours. The factory overhead allocated per unit of Blinks is Oa. $308.12 Ob. $23.17 Oc. $44.34 Od. $59.10

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 36 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 Janitorial Department $7,000 4,000 Cutting Department Pruning Department 52,000 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…