eBook Print Item Question Content Area 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 $261,000. The total cost of the Cafeteria Department is $300,000. The number of employees and the square footage in each department are as follows: Department Employees Square Feet Security 10 570 Cafeteria 28 2,400 Laser 40 4,800 Forming 50 800 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. Line Item Description CafeteriaDepartment LaserDepartment FormingDepartment Security Department cost allocation $fill in the blank 1 $fill in the blank 2 $fill in the blank 3

Algebra: Structure And Method, Book 1

(REV)00th Edition

ISBN:9780395977224

Author:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole

Publisher:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole

Chapter9: Systems Of Linear Equations

Section9.5: Multiplication With The Addition-or-subtraction Method

Problem 1MP

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Question Content Area

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 $261,000. The total cost of the Cafeteria Department is $300,000. The number of employees and the square footage in each department are as follows:

Department	Employees	Square Feet
Security	10	570
Cafeteria	28	2,400
Laser	40	4,800
Forming	50	800

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.

Line Item Description	Cafeteria Department	Laser Department	Forming Department
Security Department cost allocation	$fill in the blank 1	$fill in the blank 2	$fill in the blank 3

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