Brewster Toymakers Inc. produces toys for children. The toys are produced in the Molding and Assembly departments.
Question:
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:
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 and
(b) The percentage of Security costs that should be allocated to the Janitorial Department.
Step by Step Answer:
Forensic And Investigative Accounting
ISBN: 9780808056300
10th Edition
Authors: G. Stevenson Smith D. Larry Crumbley, Edmund D. Fenton