Support Department Cost Allocation—Direct Method Yo-Down Inc. produces yogurt. Information related to the company’s yogurt production follows:   Production Department 1   Production Department 2   Production Department 3 Support Department 1 cost driver 2,800         200         1,000       Support Department 1’s costs total $130,000. Using the direct method of support department cost allocation, determine the costs from Support Department 1 that should be allocated to each production department.   Production Department 1   Production Department 2   Production Department 3 Support Department 1 cost allocation $fill in the blank 1   $fill in the blank 2   $fill in the

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter5: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 1E: Yo-Down Inc. produces yogurt. Information related to the companys yogurt production follows: Support...
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Support Department Cost Allocation—Direct Method

Yo-Down Inc. produces yogurt. Information related to the company’s yogurt production follows:

  Production
Department 1
  Production
Department 2
  Production
Department 3
Support Department 1 cost driver 2,800         200         1,000      

Support Department 1’s costs total $130,000. Using the direct method of support department cost allocation, determine the costs from Support Department 1 that should be allocated to each production department.

  Production
Department 1
  Production
Department 2
  Production
Department 3
Support Department 1 cost allocation $fill in the blank 1   $fill in the blank 2   $fill in the blank 3
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