Question: can you please explain it in steps for the production total costs. Support Department Cost Allocation-Direct Method Christmes Timber, Ine, produces Christmas trees. The trees
Support Department Cost Allocation-Direct Method Christmes Timber, Ine, 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 jonitorial costs are allocated based on machine hours used and the number of trees in eech depertment, fespectively. The company estimates that the cutting and pruning areas typically have abeut 18 and 42 trees, respectivety, in them at 1 time. The company also estimates that the cutting process requirea about 9 times as many machine hours as the pruning process. The total costs of eoch department are as follows: Using the direct method of support department col-allocation, determine the total cost of each production department after allocating all aupport costs to the production departments. thenes by whis The direct method anocates alf support department costs directly to procuction departments. The usage of the support aepartment cost diver by multiplying the percentage urage of each production anpartment by the cotal suppert departunent casts
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
