Question: Support Department Cost Allocation Sequential Method Snowy River Stallion Inc. produces horse and rancher equipment. Costs from Support Department 1 are allocated based on the

 Support Department Cost Allocation Sequential Method Snowy River Stallion Inc. produces

Support Department Cost Allocation Sequential Method 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: Support Support Production Production Department 1 Department 2 Department 1 Department 2 Number of employees 9 7 25 18 Asset value $1,150 $670 $6,230 $5,100 Department cost $20,000 $15,500 $99,000 $79,000 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. Support Production Production Department 2 Department 1 Department 2 Support Department 1 cost allocation

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