Reciprocal Method of Allocation of Service Department Costs ASU Tool has three service departments (Repair, Tool, and Receiving) that support two production departments (Assembly and Bolting). Their pre-allocation departmental costs are as follows.

Services Provided
Departments	Overhead Costs before Allocation	Repair	Tool	Receiving
Assembly	$15,000	55%	40%	45%
Bolting	20,000	20%	25%	30%
Repair	25,000	---	20%	15%
Tool	33,000	15%	---	10%
Receiving	10,000	10%	15%	---
Total Overhead	$103,000	100%	100%	100%

By filling out the following the table, allocate the costs of service departments to production departments using reciprocal method.

Service Departments			Production Departments
Repair	Tool	Receiving	Assembly	Bolting	Total
Dept. Overhead before Allocation	$25,000	$33,000	$10,000	$15,000	$20,000	$103,000
Repair (R)	(1)	(2)	(3)	(4)	(5)
Tool (T)	(6)	(7)	(8)	(9)	(10)
Receiving (V)	(11)	(12)	(13)	(14)	(15)
Total Dept. Overhead	(16)	(17)	(18)	(19)	(20)	$103,000

(21) Equation 1

(22) Equation 2

(23) Equation 3

Showing your work, fine values for total R, total T, and total V:

Answer rating: 100% (QA)

Creation of Equations R 2500020T15V T3300015R10V V1000010R15T taking 2 equations and R 2500020T15V T... View the full answer