Question: 5upport department cost allocation-reciprocal services method Devis 5 nowflake A Co, produces Christmas stockings in its Cutting and Sewing departments. The Maintenance and Security departments
5upport department cost allocation-reciprocal services method Devis 5 nowflake A Co, produces Christmas stockings in its Cutting and Sewing departments. The Maintenance and Security departments support the production of the stocking Costr from the Mabtensnce Department are allocated based co machine hours, and costs from the Security Department are allocated based on asset value, Information about each department is provided io the following coble: prowuction department after allocating all support department costs to the production departments using the reciprocal services method, The ceclarcal services method considers all inter-suppoit-department service, and thus is the most acturate of the three support department allocation methods, The
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