Support Department Cost AllocationReciprocal Services Method Blue Africa Inc. produces laptops and desktop computers. The...
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Accounting
Support Department Cost AllocationReciprocal Services Method
Blue Africa Inc. produces laptops and desktop computers. The companys production activities mainly occur in what the company calls its Laser and Forming departments. The Cafeteria and Security departments support the companys production activities and allocate costs based on the number of employees and square feet, respectively. The total cost of the Security Department is $246,000. The total cost of the Cafeteria Department is $450,000. The number of employees and the square footage in each department are as follows:
Department
Employees
Square Feet
Security
10
570
Cafeteria
24
2,400
Laser
40
3,200
Forming
50
2,400
Using the reciprocal services method of support department cost allocation, determine the total costs from the Security Department that should be allocated to the Cafeteria Department and to each of the production departments.
Line Item Description
CafeteriaDepartment
LaserDepartment
FormingDepartment
Security Department cost allocation
$fill in the blank
$fill in the blank
$fill in the blank
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