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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
Cutting Department
Assembly Department
Department costs
$310,000
$169,000
$1,504,000
$680,000
Square feet
50
5,000
1,000
4,000
10
3
30
Required - Allocate the support department costs to the production departments using the direct method.
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