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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.
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