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 $252,000. The total cost of th Cafeteria Department is $584,000. The number of employees and the square footage in each department are as follows: Square Feet Employees 10 24 40 50 Security Department Cafeteria Department Laser Department Forming Department 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. Security Department cost allocation 580 2,400 3,200 2,400 Cafeteria Department Laser Department Forming Department
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 $252,000. The total cost of th Cafeteria Department is $584,000. The number of employees and the square footage in each department are as follows: Square Feet Employees 10 24 40 50 Security Department Cafeteria Department Laser Department Forming Department 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. Security Department cost allocation 580 2,400 3,200 2,400 Cafeteria Department Laser Department Forming Department
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter5: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 3E: Blue Africa Inc. produces laptops and desktop computers. The companys production activities mainly...
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![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 $252,000. The total cost of the
Cafeteria Department is $584,000. The number of employees and the square footage in each department are as follows:
Square Feet
Employees
10
24
40
50
Security Department
Cafeteria Department
Laser Department
Forming Department
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.
Security Department cost allocation
580
2,400
3,200
2,400
Cafeteria
Department
Laser
Department
Forming
Department](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcfacf16c-5d28-4d8e-9edb-27f8c408c59d%2F8c2ec43d-b48e-4041-ab82-a22619ef2927%2F0e592o_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 $252,000. The total cost of the
Cafeteria Department is $584,000. The number of employees and the square footage in each department are as follows:
Square Feet
Employees
10
24
40
50
Security Department
Cafeteria Department
Laser Department
Forming Department
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.
Security Department cost allocation
580
2,400
3,200
2,400
Cafeteria
Department
Laser
Department
Forming
Department
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