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Determine the total cost of each production department

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    Assignment ID: FG133135293

    Question – Support Department Cost Allocation-Direct Method – Christmas Timber, Inc., 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 janitorial costs are allocated based on machine hours used and the number of trees in each department, respectively. The company estimates that the cutting and pruning areas typically have about 36 and 54 trees, respectively, in them at 1 time. The company also estimates that the cutting process requires about 9 times as many machine hours as the pruning process. The total costs of each department are as follows:

    Maintenance Department $9,000

    Janitorial Department 4,000

    Cutting Department 52,000

    Pruning Department 10,000

    Using the direct method of support department cost allocation, determine the total cost of each production department after allocating all support costs to the production departments.

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