1.

Support department cost allocationdirect method

Becker Tabletops has two support departments (Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevant details for these departments are as follows:

Support Department		Cost Driver
Janitorial Department		Square footage to be serviced
Cafeteria Department		Number of employees

	Janitorial Department	Cafeteria Department	Cutting Department	Assembly Department
Department costs	$310,000	$200,000	$1,480,000	$660,000
Square feet	40	5,100	1,200	4,800
Number of employees	8	3	18	2

Allocate the support department costs to the production departments using the direct method.

	Cutting Department		Assembly Department
Janitorial Department cost allocation	$fill in the blank 1		$fill in the blank 2
Cafeteria Department cost allocation	$fill in the blank 3		$fill in the blank 4

2.

Support Department Cost AllocationDirect 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 12 and 48 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	$9,000
Janitorial Department	3,000
Cutting Department	53,000
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.

	Cutting Department		Pruning Department
Production departments total costs	$fill in the blank 1