Question

Christmas Timber, Inc.produces Christmas trees. The trees are produced through a cutting and pruning process. Machine...

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 21 and 49 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 $8,000 Janitorial Department 6,000 Cutting Department 55,000 Pruning Department 8,000 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.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Christmas Timber, Inc., produces Christmas trees. The trees are produced through a cutting and pruning process....
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 14 and 56 trees, respectively, in them at 1 time. The company also estimates that the cutting process...
Anders Company has two producing departments - Cutting and Sewing - and two support departments -...
Anders Company has two producing departments - Cutting and Sewing - and two support departments - Maintenance and General Factory (GF). Anders provided the following information on the four departments: Maintenance General Factory Cutting Sewing Direct overhead costs $10,000 $270,000 $56,400 $75,000 Machine hours 459 2,000 9,000 9,000 Square footage 2,500 3,418 5,000 8,500 The company does not break overhead into fixed and variable components. The bases for allocation are maintenance - machine hours; general factory - square feet. 1....
Required information [The following information applies to the questions displayed below.] McKeoun Enterprises is a large...
Required information [The following information applies to the questions displayed below.] McKeoun Enterprises is a large machine tool company now experiencing alarming increases in maintenance expense in each of its four production departments. Maintenance costs are currently allocated to the production departments on the basis of direct labor hours incurred in the production department. To provide pressure for the production departments to use less maintenance, and to provide an incentive for the maintenance department to become more efficient, McKeoun has...
1. Which of the following methods allocates joint costs using a measure such as pounds, gallons,...
1. Which of the following methods allocates joint costs using a measure such as pounds, gallons, or inches at the split-off point? a.weighted average method b.net realizable value method c.physical units method 2. Johnson Lumber Mill produces various grades of cut boards from raw lumber. The costs incurred before the split-off point where the cut boards are separated and processed further are a.investment center costs b.new costs that cannot be traced to the various grades of lumber being produced c.new...
Franklin Manufacturing Company uses two departments to make its products. Department I is a cutting department...
Franklin Manufacturing Company uses two departments to make its products. Department I is a cutting department that is machine intensive and uses very few employees. Machines cut and form parts and then place the finished parts on a conveyor belt that carries them to Department II, where they are assembled into finished goods. The assembly department is labor intensive and requires many workers to assemble parts into finished goods. The company’s manufacturing facility incurs two significant overhead costs: employee fringe...
Campbell Manufacturing Company uses two departments to make its products. Department I is a cutting department...
Campbell Manufacturing Company uses two departments to make its products. Department I is a cutting department that is machine intensive and uses very few employees. Machines cut and form parts and then place the finished parts on a conveyor belt that carries them to Department II, where they are assembled into finished goods. The assembly department is labor intensive and requires many workers to assemble parts into finished goods. The company’s manufacturing facility incurs two significant overhead costs: employee fringe...
Celestial Artistry Company is developing departmental overhead rates based on direct-labor hours for its two production...
Celestial Artistry Company is developing departmental overhead rates based on direct-labor hours for its two production departments, Etching and Finishing. The Etching Department employs 20 people and the Finishing Department employs 80 people. Each person in these two departments works 2,000 hours per year. The production-related overhead costs for the Etching Department are budgeted at $200,000, and the Finishing Department costs are budgeted at $320,000. Two service departments, Maintenance and Computing, directly support the two production departments. These service departments...
Rooney Manufacturing Company uses two departments to make its products. Department I is a cutting department...
Rooney Manufacturing Company uses two departments to make its products. Department I is a cutting department that is machine intensive and uses very few employees. Machines cut and form parts and then place the finished parts on a conveyor belt that carries them to Department II, where they are assembled into finished goods. The assembly department is labor intensive and requires many workers to assemble parts into finished goods. The company’s manufacturing facility incurs two significant overhead costs: employee fringe...
RC Ltd (“RC”) manufactures and distributes products in the healthcare industry. RC has two operating departments...
RC Ltd (“RC”) manufactures and distributes products in the healthcare industry. RC has two operating departments - E and C, and three support departments - Administration, Marketing, and Engineering. The Engineering department allocates costs using budgeted total maintenance hours. The Administration and Marketing departments use the number of labour hours incurred. The budgeted costs for Administration, Marketing, and Engineering departments are $140,000, $280,000, and $600,000 respectively. The budgeted manufacturing costs for departments E and C are $750,000 and $850,000 respectively....
IPort Products makes cases for portable music players in two processes, cutting and sewing. The cutting...
IPort Products makes cases for portable music players in two processes, cutting and sewing. The cutting process has a capacity of 130,000 units per year; sewing has a capacity of 180,000 units per year. Cost information follows. Inspection and testing costs $ 55,000 Scrap costs (all in the cutting dept.) 155,000 Demand is very strong. At a sales price of $17.00 per case, the company can sell whatever output it can produce. IPort Products can start only 130,000 units into...