2 Support Department Cost Allocation-Direct MethodYo-Down Inc. produces yogurt. Information related to the company's yogurt production follows:ProductionProductionProductionDepartment 1Department 2Department 3Support Department 1 cost driver6,0005003,500Support Department 1's costs total $160,000. Using the direct method of support department cost allocation, determine the costs from Support Department 1that should be allocated to each production department.ProductionProductionProductionDepartment 1Department 2Department 3Support Department 1 cost allocation

Support Department Cost Allocation - Direct Method: Under this method, costs are directly to…

Support Department Cost Allocation-Direct Method (o-Down Inc. produces yogurt. Information related to the company's yogurt production follows: Production Production Production Department 1 Department 2 Department 3 Support Department 1 cost driver 6,000 500 3,500 Support Department 1's costs total $160,0000. 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 Production Production Department 1 Department 2 Department 3 Support Department 1 cost allocation

Support Department Cost Allocation-Direct Method (o-Down Inc. produces yogurt. Information related to the company's yogurt production follows: Production Production Production Department 1 Department 2 Department 3 Support Department 1 cost driver 6,000 500 3,500 Support Department 1's costs total $160,0000. 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 Production Production Department 1 Department 2 Department 3 Support Department 1 cost allocation

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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Allocating selling and administrative expenses using activity - based costing Artic Air Inc. manufactures cooling units for commercial buildings.The price and cost of goods sold for each units are as follows: In addition, the company incurs selling and administrative expenses of $226,250. The company wishes to assign these costs to its three major customers,Gough Industries,Breen Inc., and The Martin Group.These expenses are related to three major nonmanufacturing activities:customer services,project bidding,and engineering support.The engineering support is in the form of engineering changes thet are placed by the customer to change the design of a product.The budgeted activity costs and activity bases associated with these activities are: instructions 1.Determine the activity rates for each of the three nonmanufacturing activity pools. 2.Determine the activity costs allocated to the three customers,using the activity rates in (1) 3.Construct customer profitability reports for tile…
Support Department Cost Allocation-Direct Method Yo-Down tinc. produces yogurt. Information related to the company's yogurt production follow Production Production Production Department 1 Department 2 Department 3 Support Department 1 cost driver 1,400 100 500 Support Department 1% costs total $142,000, 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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