Answer:
a. The most support department cost is allocated to assembly department
b. The most support department costs under the sequential method is allocated to cutting department
c. The most support department costs under the reciprocal services method is allocated to Cutting department
.
Explanation:
a. Allocated costs to cutting department = $62000 + $126,750 = $188,750
Allocates costs to assembly department = $248,000 + $42,250 = $290,250
Conclusion: The most support department cost is allocated to assembly department
b. Allocated costs to cutting department = $31,000 + $243,000 = $274,000
Allocates costs to assembly department = $124,000 + $81,000 = $205,000
Allocates costs to cafeteria department = $155,000
Conclusion: The most support department costs under the sequential method is allocated to cutting department
.
c. Allocated costs to cutting department = $38,200 + $216,000 = $254,200
Allocates costs to assembly department = $152,800 + $72,000 = $224,000
Conclusion: The most support department costs under the reciprocal services method is allocated to Cutting department
.
