Support department cost allocationreciprocal services method Temple Lights, Inc. produces Hanukkah menorahs in its Cutting...
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Support department cost allocationreciprocal services method
Temple Lights, Inc. produces Hanukkah menorahs in its Cutting and Molding departments. The Maintenance and Security departments support the production of the menorahs. Costs from the Maintenance Department are allocated based on machine hours, and costs from the Security Department are allocated based on asset value. Information about each department is provided in the following table:
Line Item Description
MaintenanceDepartment
SecurityDepartment
CuttingDepartment
MoldingDepartment
Machine hours
800
2,000
7,600
10,400
Asset value
$2,000
$1,400
$2,000
$6,000
Department cost
$41,760
$18,560
$67,000
$83,000
Determine the total cost of each production department after allocating all support department costs to the production departments using the reciprocal services method.
Line Item Description
CuttingDepartment
MoldingDepartment
Production departments' total costs
$fill in the blank 1
$fill in the blank 2
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