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eBook Print Item Question Content Area Support Department Cost AllocationSequential Method Black Diamond Devices Inc. produces replacement components for smartphones. Costs from Support Department 1
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Support Department Cost AllocationSequential Method
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 DescriptionSupport Department 1Support Department 2Production Department 1Production Department 2Number of employees5101525Asset value$1,150$540$6,230$5,200Department cost$35,000$15,500$99,000$80,000Using 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 DescriptionSupport Department 2Production Department 1Production Department 2Support Department 1 cost allocationStep by Step Solution
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