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ervices 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 $254,000. The total cost of the Cafeteria Department is $273,000. The number of empioyees and the square footage in each department are as follows: Employees Square Feet Security Department 10 570 Cafeteria Department 28 2,400 Laser Department 40 4,000 Forming Department 50 1,600 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. Cafeteria Laser Forming Department Department Department 87,000 V $ 116,000 X Security Department cost allocation

ervices 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 $254,000. The total cost of the Cafeteria Department is $273,000. The number of empioyees and the square footage in each department are as follows: Employees Square Feet Security Department 10 570 Cafeteria Department 28 2,400 Laser Department 40 4,000 Forming Department 50 1,600 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. Cafeteria Laser Forming Department Department Department 87,000 V $ 116,000 X Security Department cost allocation

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Recipricol method.

syncing Item 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 $254,000. The total cost of the Cafeteria Department is $273,000. The number of empioyees and the square footage in each department are as follows: Employees Square Feet Security Department 10 570 Cafeteria Department 28 2,400 Laser Department 40 4,000 Forming Department 50 1,600 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. Cafeteria Laser Forming Department Department Department 87,000 $ 116,000 X Security Department cost allocation Feedback Check My Work 9:17 AM 11/16/2020 %24 %24
Transcribed Image Text:syncing Item 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 $254,000. The total cost of the Cafeteria Department is $273,000. The number of empioyees and the square footage in each department are as follows: Employees Square Feet Security Department 10 570 Cafeteria Department 28 2,400 Laser Department 40 4,000 Forming Department 50 1,600 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. Cafeteria Laser Forming Department Department Department 87,000 $ 116,000 X Security Department cost allocation Feedback Check My Work 9:17 AM 11/16/2020 %24 %24
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