Question

Yo-Down Inc. produces yogurt. Information related to the company’s yogurt production follows: Production Department 1 Production...

Yo-Down Inc. produces yogurt. Information related to the company’s yogurt production follows:

Production
Department 1
Production
Department 2
Production
Department 3
Support Department 1 cost driver 1,600       100       300      

Support Department 1’s costs total $120,000. 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 $ $ $

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