Question
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
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 Description Support Department 1 Support Department 2 Production Department 1 Production Department 2 Number of employees 5 10 15 25 Asset value $1,150 $540 $6,230 $5,200 Department cost $35,000 $15,500 $99,000 $80,000 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. Line Item Description Support Department 2 Production Department 1 Production Department 2 Support Department 1 cost allocation
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