Support Department Cost AllocationDirect Method

Yo-Down Inc. produces yogurt. Information related to the companys yogurt production follows:

	Production Department 1		Production Department 2		Production Department 3
Support Department 1 cost driver	1,400		100		500

Support Department 1s costs total $142,000. Using the direct method of support department cost allocation, determine the costs from Support Department 1 that should be allocated to each production department.

	Production Department 1		Production Department 2		Production Department 3
Support Department 1 cost allocation