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Support Department Cost Allocation-Direct Method Yo-Town Inc. produces yogurt. Information related to the company's yogurt production follows: Production Production Production Department 1 Department 2 Department 3 1,000 100 900 Support Department 1 cost driver Support Department 1's costs total $140,000. Using the direct method of support department cost allocation, determine the costs from Support Department 1 that should be allocated to each production department. Support Department 1 cost allocation Production Department 1 Production Department 2 Production Department 3

Support Department Cost Allocation-Direct Method Yo-Town Inc. produces yogurt. Information related to the company's yogurt production follows: Production Production Production Department 1 Department 2 Department 3 1,000 100 900 Support Department 1 cost driver Support Department 1's costs total $140,000. Using the direct method of support department cost allocation, determine the costs from Support Department 1 that should be allocated to each production department. Support Department 1 cost allocation Production Department 1 Production Department 2 Production Department 3

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Support Department Cost Allocation-Direct Method Yo-Town Inc. produces yogurt. Information related to the company's yogurt production follows: Production Production Production Department 1 Department 2 Department 3 1,000 100 900 Support Department 1 cost driver Support Department 1's costs total $140,000. Using the direct method of support department cost allocation, determine the costs from Support Department 1 that should be allocated to each production department. Support Department 1 cost allocation Production Department 1 $ Production Production Department 2 Department 3
Transcribed Image Text:Support Department Cost Allocation-Direct Method Yo-Town Inc. produces yogurt. Information related to the company's yogurt production follows: Production Production Production Department 1 Department 2 Department 3 1,000 100 900 Support Department 1 cost driver Support Department 1's costs total $140,000. Using the direct method of support department cost allocation, determine the costs from Support Department 1 that should be allocated to each production department. Support Department 1 cost allocation Production Department 1 $ Production Production Department 2 Department 3
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