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Allocate support department costs to production departments

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Reference no: EM132760990

Problem - 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

$169,000

$1,504,000

$680,000

Square feet

50

5,000

1,000

4,000

Number of employees

10

3

30

10

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

Reference no: EM132760990

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