Black Diamond Devices Inc. produces replacement components for smartphones. 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:

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:

Number of employees Asset value Department cost Support Department 1 5 $1,150 $35,000 Support Department 2 10 $540 $15,500 Production Department 1 15 $6,230 $99,000 Production Department 2 25 $5,200 $80,000