6) Jack Donaldson owns and operates Jack's Abstracting Service. Jack's two revenue generating operations (Abstracting Services...

 

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6) Jack Donaldson owns and operates Jack's Abstracting Service. Jack's two revenue generating operations (Abstracting Services and Closing Services) are supported by two service departments: Clerical and Custodi Costs in the service departments are allocated in the following order using the designated allocation bases. Clerical: number of transactions processed. Custodial: square footage of space occupied. Average and expected activity levels for next month are as follows: Number of Square Expected Transactions Footage Costs Abstract services 50 1,800 Closing services 25 2,200 1,600 $40,000 5 10,000 Clerical Custodial Required: Use the reciprocal method to allocate the service department costs to the revenue generating departments Provide the total costs for the revenue departments. Abstract services$ Closing services$ 6) Jack Donaldson owns and operates Jack's Abstracting Service. Jack's two revenue generating operations (Abstracting Services and Closing Services) are supported by two service departments: Clerical and Custodi Costs in the service departments are allocated in the following order using the designated allocation bases. Clerical: number of transactions processed. Custodial: square footage of space occupied. Average and expected activity levels for next month are as follows: Number of Square Expected Transactions Footage Costs Abstract services 50 1,800 Closing services 25 2,200 1,600 $40,000 5 10,000 Clerical Custodial Required: Use the reciprocal method to allocate the service department costs to the revenue generating departments Provide the total costs for the revenue departments. Abstract services$ Closing services$