Exercise $11-35($Algo$)$ Cost Allocation: Reciprocal Method $($LO $11-1)$

Memorial Services, Incorporated $($MSI$)$ has three service departments $($IT$,$ Accounting, and HR$)$ and two production departments $($West and East$).$ The usage data for each of the service departments for the previous period follow:

$$ITAccountingHRWestEastIT$--0\%20\%40\%40\%$Accounting$0\%--0\%40\%60\%$HR$10\%10\%--20\%60\%$

The direct costs of the service departments in the previous period were $$282,550$ for IT$,$ $$101,000$ for Accounting, and $$114,500$ for HR$.$

Required:

Use the reciprocal method to allocate the service department costs to the production departments. $($Matrix algebra is not required.$)$

Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Exercise $11-35($Algo$)$ Cost Allocation: Reciprocal Method $($LO $11-1)$

Memorial Services, Incorporated $($MSI$)$ has three service departments $($IT$,$ Accounting, and HR$)$ and two production departments $($West and East$).$ The usage data for each of the service departments for the previous period follow:

The direct costs of the service departments in the previous period were $\backslash (\backslash$$ $282,550\backslash )$ for IT$,\backslash (\backslash$$ $101,000\backslash )$ for Accounting, and $\backslash (\backslash$$ $114,500\backslash )$ for HR$.$

Required:

Use the reciprocal method to allocate the service department costs to the production departments. $($Matrix algebra is not required.$)$

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