Brewster Toymakers Inc. produces toys for children. The toys are produced in the Molding and Assemb and Security departments support the production of the toys. Costs from the Janitorial Department are feet. Costs from the Security Department are allocated based on asset value. Relevant department info following table: Square feet Asset value Janitorial Department 650 $200 $2,000 Security Department 1,600 $220 $1,600 Molding Department Assembly Department 1,600 $1,800 Department cost $10,800 Using the reciprocal services method of support department cost allocation, determine: 4,800 $2,000 $12,200 a. The percentage of Janitorial costs that should be allocated to the Security Department. % b. The percentage of Security costs that should be allocated to the Janitorial Department. %

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Brewster Toymakers Inc. produces toys for children. The toys are produced in the Molding and Assembl
and Security departments support the production of the toys. Costs from the Janitorial Department are
feet. Costs from the Security Department are allocated based on asset value. Relevant department infor
following table:
Square feet
Asset value
Janitorial
Department
650
$200
$2,000
Molding
Security
Department Department
Assembly
Department
1,600
$220
$1,600
1,600
$1,800
Department cost
$10,800
Using the reciprocal services method of support department cost allocation, determine:
4,800
$2,000
$12,200
a. The percentage of Janitorial costs that should be allocated to the Security Department.
%
b. The percentage of Security costs that should be allocated to the Janitorial Department.
%
Transcribed Image Text:Brewster Toymakers Inc. produces toys for children. The toys are produced in the Molding and Assembl and Security departments support the production of the toys. Costs from the Janitorial Department are feet. Costs from the Security Department are allocated based on asset value. Relevant department infor following table: Square feet Asset value Janitorial Department 650 $200 $2,000 Molding Security Department Department Assembly Department 1,600 $220 $1,600 1,600 $1,800 Department cost $10,800 Using the reciprocal services method of support department cost allocation, determine: 4,800 $2,000 $12,200 a. The percentage of Janitorial costs that should be allocated to the Security Department. % b. The percentage of Security costs that should be allocated to the Janitorial Department. %
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