Answer:
A.Allocates costs to assembly department = $290,250
B.Allocated costs to cutting department =$274,000
C.Allocated costs to cutting department =$254,200
Explanation:
A. Calculation for the production department that is allocated the most support department costs under the direct method
Allocated costs to cutting department =
($62,000+ $126,750)
Allocated costs to cutting department=$188,750
Allocates costs to assembly department = ($248,000+$42,250)
Allocates costs to assembly department = $290,250
Based on the above calculation the production department that is allocated the most support department costs will be Assembly department because it has the highest allocated costs of the amount of $290,250
B) Calculation for the production department that is allocated the most support department costs under the sequential method
Allocated costs to cutting department = ($ 31,000+ $243,000)
Allocated costs to cutting department =$274,000
Allocates costs to assembly department = ($124,000+$81,000)
Allocates costs to assembly department = $205,000
Allocates costs to cafeteria department =$155,000
Based on the above calculation the production department that is allocated the most support department costs will be Cutting department because the department had the highest allocated costs of the amount of $274,000
C) production department is allocated the most support department costs under the reciprocal services method?
Allocated costs to cutting department = ($ 38200+ $216000) =$254200 ( most support cost allocated to Cutting department
Allocates costs to assembly department = ($152800+$72000) = $224000
