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....


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:














































Support

Department 1


Support
Department 2


Production
Department 1


Production
Department 2

Number of employees972518
Asset value$1,150$670$6,230$5,100
Department cost$20,000$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.






















Support
Department 2


Production
Department 1


Production
Department 2

Support Department 1 cost allocation$$$


Jun 09, 2022
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