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:

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:

Support Department 1 Support Department 2 Production Department 1 25 Production Department 2 18 Number of employees Asset value Department cost $670 $1,150 $6,230 $5,100 $79,000 $20,000 $15,500 $99,000