Question: eBook Show Me How Support department cost allocation-sequential method Martay Creations produces winter scarves. The scarves are produced in the Cutting and Sewing departments.
eBook Show Me How Support department cost allocation-sequential method Martay Creations 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 table: Department Maintenance Department Security Department Cutting Department Sewing Department Total Cost $2,200 4,500 21,200 24,900 Number of Employees 3 21 19 Machine Hours 40 Square Feet 600 0 500 3,600 2,400 5,400 3,000 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. Cutting Sewing Department Department Production departments total costs
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