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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
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:
Line Item Description | Support Department 1 | Support Department 2 | Production Department 1 | Production Department 2 |
---|---|---|---|---|
Number of employees | 5 | 10 | 15 | 25 |
Asset value | $1,150 | $540 | $6,230 | $5,200 |
Department cost | $35,000 | $15,500 | $99,000 | $80,000 |
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.
Line Item Description | Support Department 2 | Production Department 1 | Production Department 2 |
---|---|---|---|
Support Department 1 cost allocation | $fill in the blank 1 | $fill in the blank 2 | $fill in the blank 3 |
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