Exercise $11-32($Algo$)$ Cost Allocation: Reciprocal Method $($LO $11-1)$

Woodstock Binding has two service departments, IT $($Information Technology$)$ and HR $($Human Resources$),$ and two operating

departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets $($issued with each IT

request$)$ in each department and $HR$ costs on the basis of employees in each department.

The following data appear in the company records for the current period:

Required:

Allocate the service department costs using the reciprocal method. $($Matrix algebra is not required because there are only two service

departments.$)$

Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations.