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CH 19. Support Department Cost Allocation-Sequential Method Snowy River Stallion Inc. produces horse and rancher equipment. Costs from Support Department 1 are allocated based on the number of employees. Costs from Support Department 2 are allocated based on asset value. Relevant department information is provided in the following table: I Number of employees Asset value Support Department 1 Support Department 2 9 $1,150 $20,000 Production Department 1 7 $670 25 18 $6,230 $5,100 Department cost $15,500 $99,000 $79,000 Using the sequential method of support department cost allocation, determine the total costs from Support Department 1 (assuming they are allocated first) that should be allocated to Support Department 2 and to each of the production departments. Production Department 2

CH 19. Support Department Cost Allocation-Sequential Method Snowy River Stallion Inc. produces horse and rancher equipment. Costs from Support Department 1 are allocated based on the number of employees. Costs from Support Department 2 are allocated based on asset value. Relevant department information is provided in the following table: I Number of employees Asset value Support Department 1 Support Department 2 9 $1,150 $20,000 Production Department 1 7 $670 25 18 $6,230 $5,100 Department cost $15,500 $99,000 $79,000 Using the sequential method of support department cost allocation, determine the total costs from Support Department 1 (assuming they are allocated first) that should be allocated to Support Department 2 and to each of the production departments. Production Department 2

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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CH 19. Support Department Cost Allocation-Sequential Method Snowy River Stallion Inc. produces horse and rancher equipment. Costs from Support Department 1 are allocated based on the number of employees. Costs from Support Department 2 are allocated based on asset value. Relevant department information is provided in the following table: I Number of employees Asset value Support Department 1 Support Department 2 Production Department 1 Production Department 2 9 7 25 18 $1,150 $670 $6,230 $5,100 $20,000 $15,500 $99,000 $79,000 Department cost Using the sequential method of support department cost allocation, determine the total costs from Support Department 1 (assuming they are allocated first) that should be allocated to Support Department 2 and to each of the production departments.
Transcribed Image Text:CH 19. Support Department Cost Allocation-Sequential Method Snowy River Stallion Inc. produces horse and rancher equipment. Costs from Support Department 1 are allocated based on the number of employees. Costs from Support Department 2 are allocated based on asset value. Relevant department information is provided in the following table: I Number of employees Asset value Support Department 1 Support Department 2 Production Department 1 Production Department 2 9 7 25 18 $1,150 $670 $6,230 $5,100 $20,000 $15,500 $99,000 $79,000 Department cost Using the sequential method of support department cost allocation, determine the total costs from Support Department 1 (assuming they are allocated first) that should be allocated to Support Department 2 and to each of the production departments.
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