Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can someone please help? I will upvote if it's correct! Support Department Cost Allocation-Direct Method Yo-Town Inc. produces yogurt. Information related to the company's yogurt

Can someone please help? I will upvote if it's correct!
Support Department Cost Allocation-Direct Method Yo-Town Inc. produces yogurt. Information related to the company's yogurt production follows: Production Production Production Department 1 Department 2 Department 3 1,500 Support Department 1 cost driver Support Department 1's costs total $157,000. 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 Feedback Production Department 1 $ 84,000 X 200 300 Production Department 2 $ 21,000 X Production Department 3 $ 35,000 X Check My Work One of the three methods commonly used for allocating support department costs to production is the direct method. The direct method allocates all support department costs directly to production departments. In doing so, the direct method ignores the possibility that some support departments may also serve other support departments.
image text in transcribed
Support Department Cost Allocation-Direct Method Yo-Town Inc. produces yogurt. Information related to the company's yogurt production follows: Support Department 1's costs total \$157,000. Using the direct method of support department cost allocation, determine the costs from Support Department 1 that should be allocated to each production department. Feedback TCheck My Work One of the three methods commonly used for allocating support department costs to production is the direct method. The direct method allocates all support department costs directly to production departments. In doing so, the direct method ignores the possibility that some support departments may also serve other support departments

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Progressive Audit A Toolkit For Improving Your Organizational Quality Culture

Authors: Robert Pfannerstill

1st Edition

0873896629, 978-0873896627

More Books

Students also viewed these Accounting questions