Question: Chapter 19 Homework eBook Support Department Cost Allocation --Reciprocal Services Method Blue Africa Inc, produces laptops and desktop computers. The company's production activities mainly occur

 Chapter 19 Homework eBook Support Department Cost Allocation --Reciprocal Services Method

Chapter 19 Homework eBook Support Department Cost Allocation --Reciprocal Services Method Blue Africa Inc, produces laptops and desktop computers. The company's production activities mainly occur in what the company calls its caur and Forming departments. The Cafeteria and Security departments support the company's production activities and allocate costs based on the number of empluyees and square feet respectively. The total cost of the Security Department is $270,000. The total cost of the Cafeteria Department is $404,000. The number of employees and the soare footage in each department are as follows: Employees Square Feet Security Department 10 570 Cafeteria Department 26 2,400 Laser Department 40 2,400 Forming Department 50 3,200 Using the reciprocal services method of support department cost allocation, determine the total costs from the Security Department that should be allocated to the Cafeteria Department and to each of the production departments Cafeteria Forming Department Department Department Security Department cost allocation Laser Feedback Check My Wors The reciprocal services method considers all inter-support-department services, and thus is the most accurate of the three support department location dontost.driver by the other departments to which its costs are to be allocated must be determined

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