Question: Support department cost allocationsequential method Martay Creations produces winter scarves. The scarves are produced in the Cutting and Sewing departments. The Maintenance and Security departments
Support department cost allocationsequential 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 | Total Cost | Number of Employees | Machine Hours | Square Feet |
|---|---|---|---|---|
| Maintenance Department | $2,200 | 5 | 40 | 600 |
| Security Department | 4,500 | 3 | 0 | 500 |
| Cutting Department | 21,200 | 21 | 3,600 | 2,400 |
| Sewing Department | 24,900 | 19 | 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.
| Line Item Description | Cutting Department | Sewing Department |
|---|---|---|
| Production departments total costs | $fill in the blank 1 | $fill in the blank 2 |
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