What is the recipricol formula? Certainly! Below is the transcription and explanation:---**Jamison Company Reciprocation Services Method for Support Department Costs Allocation**Jamison Company uses the reciprocal services method to allocate support department costs and has gathered the following information:**Janitorial Department Usage:**- Cafeteria: 50%- Cutting: 10%- Assembly: 40%**Cafeteria Department Usage:**- Janitorial: 20%- Cutting: 60%- Assembly: 20%**Department Costs:**- Janitorial Department costs are $450,000.- Cafeteria Department costs are $250,000.The task is to derive the correct equations to represent:(a) The total Janitorial (J) costs(b) The total Cafeteria (C) costs(c) The rewritten equation by substituting C into JThe equations are formatted as follows, with empty fields for values to be filled:a. $ J = \$[ \, ] + [\, ]\% \times [\, ] $b. $ C = \$[ \, ] + [\, ]\% \times [\, ] $c. $ J = \$[ \, ] + [\, ]\% \times \{ \, \$[ \, ] + [\, ]\% \times [\, ] \, \} $--- This setup helps you determine how costs from one department are reciprocally allocated to another using given percentages.

Under reciprocal method, services provided by one service department to other service department is also taken into account. Total cost of service department is actual cost incurred plus share of cost received from other service department, whose services have been used by the department.Janitorial department total cost will be equal to actual overhead cost and portion received from Cafeteria department. J = $450,000 + (20% * C) Since 20% of cafeteria department service is used by Janitorial department. Similarly, total cost of Cafeteria department will be actual overhead cost and portion received from Janitorial department. 50% of Janitorial department service is used by cafeteria department. C = $250,000 + (50% * J) Substituting C into J. J = $450,000 + {20% * [$450,000 + (20% * C)]}

Answered: Jamison Company uses the reciprocal…

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

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Chapter1: Financial Statements And Business Decisions

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What is the recipricol formula?

Certainly! Below is the transcription and explanation:

---

**Jamison Company Reciprocation Services Method for Support Department Costs Allocation**

Jamison Company uses the reciprocal services method to allocate support department costs and has gathered the following information:

**Janitorial Department Usage:**
- Cafeteria: 50%
- Cutting: 10%
- Assembly: 40%

**Cafeteria Department Usage:**
- Janitorial: 20%
- Cutting: 60%
- Assembly: 20%

**Department Costs:**
- Janitorial Department costs are $450,000.
- Cafeteria Department costs are $250,000.

The task is to derive the correct equations to represent:

(a) The total Janitorial (J) costs
(b) The total Cafeteria (C) costs
(c) The rewritten equation by substituting C into J

The equations are formatted as follows, with empty fields for values to be filled:

a. $ J = \$[ \, ] + [\, ]\% \times [\, ] $

b. $ C = \$[ \, ] + [\, ]\% \times [\, ] $

c. $ J = \$[ \, ] + [\, ]\% \times \{ \, \$[ \, ] + [\, ]\% \times [\, ] \, \} $

---

This setup helps you determine how costs from one department are reciprocally allocated to another using given percentages.

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