keAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress false eBook Calculator 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 Laser and Forming departments. The Cafeteria and Security departments support the company's production activities and allocate costs based on the number of employees and square feet, respectively. The total cost of the Security Department is $249,000. The total cost of the Cafeteria Department is $517,000. The number of employees and the square footage in each department are as follows: Employees Square Feet Security Department 510 Cafeteria Department 2,400 Laser Department 2,400 Forming Department 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 Laser Forming Department Department Department Security Department cost allocation The reciprocal services method considers all inter-support-department services, and thus is the most accurate of the three support department allocation methods. The proportional usage of each support department's cost driver by the other departments to which its costs are to be allocated must be determined. Then, the support department costs are allocated simultaneously among the departments. Previous Next Check My Work keAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress false eBook Calculator 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 Laser and Forming departments. The Cafeteria and Security departments support the company's production activities and allocate costs based on the number of employees and square feet, respectively. The total cost of the Security Department is $249,000. The total cost of the Cafeteria Department is $517,000. The number of employees and the square footage in each department are as follows: Employees Square Feet Security Department 510 Cafeteria Department 2,400 Laser Department 2,400 Forming Department 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 Laser Forming Department Department Department Security Department cost allocation The reciprocal services method considers all inter-support-department services, and thus is the most accurate of the three support department allocation methods. The proportional usage of each support department's cost driver by the other departments to which its costs are to be allocated must be determined. Then, the support department costs are allocated simultaneously among the departments. Previous Next Check My Work