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EX 19-2 Support Department Cost Allocation-Sequential Method Obj. 3 Snowy River Stallion Inc. produces horse and rancher equipment. Costs from Support Department 1 are allocated
EX 19-2 Support Department Cost Allocation-Sequential Method Obj. 3 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: Prod.. Support Department 1 Support Department 2 Production Department 1 9 7 25 Number of employees Asset value Department cost Production Department 2 18 $5,100 $79,000 $1,150 $20,000 $670 $15,500 $6,230 $99,000 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
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