support department cost allocation-reciprocal services method

Support department cost allocation-reciprocal services method Davis Snowflake & Co. produces Christmas stockings in its Cutting and Sewing departments. The Maintenance and Security departments support the production of the stockings. Conte from the Maintenance Department are allocated based on machine hours, and costs from the Security Department are allocated based on asset value. Information about each department is provided in the following table: Maintenance Security Cutting Sewing Department Department Department Department Machine hours 2,000 7,200 10,800 Asset value $2,000 $1,670 $2,500 $5,500 Department cost $36,000 $16,000 $64,000 $82,000 Determine the total cost of each production department after allocating all support department costs to the production departments using the reciproca Cutting Sewing Department Department 800 - Production departments total costs