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Boysenberry Corp Required:
A

Question 144

Essay

Boysenberry Corp. has two support departments, Personnel (P) and Maintenance (M), and two producing departments, Blending (B) and Finishing (F). Estimated direct costs and percentages of services used by these departments are as follows:  Used by Department  Support Dept. PMBFP10%60%30%M10%40%50% Direct costs $9,000$13,500$40,000$35,000\begin{array}{lcccc}&&\text { Used by Department }\\\text { Support Dept. }&P&M&B&F\\\mathrm{P} & - & 10 \% & 60 \% & 30 \% \\\mathrm{M} & 10 \% & - & 40 \% & 50 \% \\\text { Direct costs } & \$ 9,000 & \$ 13,500 & \$ 40,000 & \$ 35,000\end{array} Required:
a.Prepare a schedule allocating the support department costs to the producing departments using the direct allocation method.
b.Prepare a schedule allocating the support department costs to the producing departments using the sequential allocation method.

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