10. Support Department Cost Allocation-Reciprocal Services Method Brewster Toymakers Inc. produces toys for...
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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: E7777 Security Janitorial Molding Assembly Department Department Department Department Square feet 640 2,100 2,100 2,800 $180 $160 $1,000 Asset value $840 Department cost $2,000 $1,000 $10,500 $12,600 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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