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Sagot :
Answer:
Christmas Timber, Inc.
Total costs of each production department:
Cutting Department $ 65,100
Pruning Department $ 16,900
Production departmentsʼ total costs $82,000
Explanation:
a) Data and Calculations:
Allocation of service departments' costs to production departments:
Maintenance costs = machine hours used
Janitorial costs = number of trees
Cutting Pruning
Number of trees 16 64
Machine hours 9 1
Maintenance Janitorial Cutting Pruning Total
Total costs $ 7,000 $ 4,000 $ 58,000 $ 13,000 $82,000
Maintenance costs (7,000) 6,300 700 0
Janitorial costs (4,000) 800 3,200 0
Total costs $ 65,100 $ 16,900 $82,000
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