Question: Support department cont allocation --reciprocal services method Davis Snowflake & co produce Christmas stockings in its cutting and sewing departments. The Maintenance and security departments
Support department cont allocation --reciprocal services method Davis Snowflake & co produce Christmas stockings in its cutting and sewing departments. The Maintenance and security departments support the production of the stockings. Costs from the Maintenance Department are allocated based on machine hours and costs from the security Department are allocated and on ametal Information about each department is provided in the following table: Maintenance Security Cutting Sewing Department Department Department Department Machine hours 800 2,000 6,400 11,600 Asset value $2,000 51,410 53,000 $5,000 Department cost $33,840 $15,040 $62,000 100,000 Determine the total cost of each production department after allocating a support department costs to the production departments using the reciprocal services method Cutting Sewing Department Department Production departments total costs
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