Question: Support department cost allocation --reciprocal services method Davis Snowfiske & Co. produces Christmas stockings in its cutting and Sewing departments. The Maintenance and Security Das
Support department cost allocation --reciprocal services method Davis Snowfiske & Co. produces Christmas stockings in its cutting and Sewing departments. The Maintenance and Security Das support the production of the stockings, Costs from the Maintenance Department are allocated based on machine hours, and costa from the Security Department located based on astat value Information about each department is provided in the following table: Maintenance Security Cutting Sewing Department Department Department Department Machine hours 800 2,000 7,200 10,800 Asset value $2,000 $1,450 $3,500 $4,500 Department cost $33,120 514.720 $66,000 $82,000 Determine the total cost of each production department after allocating all support department costs to the production department using the reciprocal service method Cutting Sewing Department Department Production departments' total costs 36,828.3 X 18,541.8 X
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
