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% Janitorial Department costs are $450,000. Cafeteria Department costs are $250,000. What is the total Janitorial Department cost using the reciprocal services method? Round your answer to two decimal places. Total Janitorial Department cost $fill in the blank 1
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% Janitorial Department costs are $450,000. Cafeteria Department costs are $250,000. What is the total Janitorial Department cost using the reciprocal services method? Round your answer to two decimal places. Total Janitorial Department cost $fill in the blank 1
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...
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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% |
Janitorial Department costs are $450,000.
Cafeteria Department costs are $250,000.
What is the total Janitorial Department cost using the reciprocal services method? Round your answer to two decimal places.
| Total Janitorial Department cost | $fill in the blank 1 |
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