Using the reciprocal services method of support department cost allocation, determine: a. The percentage of Janitorial costs that should be allocated to the Security Department. b. The percentage of Security costs that should be allocated to the Janitorial Department. %
Using the reciprocal services method of support department cost allocation, determine: a. The percentage of Janitorial costs that should be allocated to the Security Department. b. The percentage of Security costs that should be allocated to the Janitorial Department. %
Chapter1: Financial Statements And Business Decisions
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Support Department Cost Allocation-Reciprocal Services Method
Brewster Toymakers Inc. produces toys for children. The toys are produced in the Molding and Assembly departments. The Janitorial and Security
departments support the production of the toys. Costs from the Janitorial Department are allocated based on square feet. Costs from the Security
Department are allocated based on asset value. Relevant department information is provided in the following table:
Janitorial
Security
Molding
Assembly
Department Department
Department
Department
Square feet
650
1,600
1,600
4,800
Asset value
$200
$220
$1,800
$2,000
Department cost
$2,000
$1,600
$10,800
$12,200
Using the reciprocal services method of support department cost allocation, determine:
a. The percentage of Janitorial costs that should be allocated to the Security Department.
%
b. The percentage of Security costs that should be allocated to the Janitorial Department.
%
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Support Department Cost Allocation-Reciprocal Services Method
Brewster Toymakers Inc. produces toys for children. The toys are produced in the Molding and Assembly departments. The Janitorial and Security
departments support the production of the toys. Costs from the Janitorial Department are allocated based on square feet. Costs from the Security
Department are allocated based on asset value. Relevant department information is provided in the following table:
Janitorial
Security
Molding
Assembly
Department Department
Department
Department
Square feet
650
1,600
1,600
4,800
Asset value
$200
$220
$1,800
$2,000
Department cost
$2,000
$1,600
$10,800
$12,200
Using the reciprocal services method of support department cost allocation, determine:
a. The percentage of Janitorial costs that should be allocated to the Security Department.
%
b. The percentage of Security costs that should be allocated to the Janitorial Department.
%
Check My Work
Previous
Next
fa
111
Inumlk
insert
8
[9
&
bac
4
6.
8
4
5
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