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$$ $262,970\backslash )$ for IT$,\backslash$$$100,800$ for Accounting, and $\backslash (\backslash$$ $114,300\backslash )$ 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.