1. Support department cost allocationreciprocal services method

Davis Snowflake & Co. produces Christmas stockings in its Cutting and Sewing departments. The Maintenance and Security departments support the production of the stockings. 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:

	Maintenance Department	Security Department	Cutting Department	Sewing Department
Machine hours	800	2,000	6,400	11,600
Asset value	$2,000	$1,460	$2,000	$6,000
Department cost	$38,160	$16,960	$65,000	$82,000

Determine the total cost of each production department after allocating all support department costs to the production departments using the reciprocal services method.

	Cutting Department		Sewing Department
Production departments total costs	$		$

2. Support department cost allocationdirect method

Becker Tabletops has two support departments (Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevant details for these departments are as follows:

Support Department		Cost Driver
Janitorial Department		Square footage to be serviced
Cafeteria Department		Number of employees

	Janitorial Department	Cafeteria Department	Cutting Department	Assembly Department
Department costs	$300,000	$200,000	$1,490,000	$700,000
Square feet	42	4,600	800	3,200
Number of employees	8	3	32	8

Allocate the support department costs to the production departments using the direct method.

	Cutting Department		Assembly Department
Janitorial Department cost allocation	$		$
Cafeteria Department cost allocation	$		$