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 2,400 200 1,400 Support Department 1’s costs total $150,000. 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
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 2,400 200 1,400 Support Department 1’s costs total $150,000. 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 | 2,400 | 200 | 1,400 |
Support Department 1’s costs total $150,000. 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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