1.

Joint Cost AllocationMarket Value at Split-off Method

Man OFort Inc. produces two different styles of door handles, standard and curved. The door handles go through a joint production molding process costing $28,000 per batch and producing 2,000 standard door handles and 1,000 curved door handles at the split-off point. Both door handles undergo additional production processes after the split-off point, but could be sold at that point: the standard style for $2 per door handle and the curved style for $1 per door handle.

Determine the amount of joint production costs allocated to each style of door handle using the market value at split-off method.

Joint Product	Allocation
Standard door handle	$
Curved door handle
Totals	$

2. 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	1,000		100		900

Support Department 1s costs total $140,000. 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	$		$		$