Becker Tabletops has two support departments ( Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevant details for these departments are as follows: **Support Department Cost Allocation—Reciprocal Services Method**Becker Tabletops has two support departments (Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevant details for these departments are as follows:| **Support Department** | **Cost Driver** ||------------------------|--------------------------------------|| Janitorial Department | Square footage to be serviced || Cafeteria Department | Number of employees |### Department Details:| **Department** | **Janitorial Department** | **Cafeteria Department** | **Cutting Department** | **Assembly Department** ||--------------------------|---------------------------|--------------------------|------------------------|-------------------------|| **Department Costs** | $310,000 | $169,000 | $1,504,000 | $680,000 || **Square Feet** | 50 | 5,000 | 1,000 | 4,000 || **Number of Employees** | 10 | 3 | 30 | 10 |Allocate the support department costs to the production departments using the reciprocal services method.### Cost Allocation Table:| | **Cutting Department** | **Assembly Department** ||-------------------------|------------------------|-------------------------|| **Janitorial Department Cost Allocation** | **$** | **$** || **Cafeteria Department Cost Allocation** | **$** | **$** |The red "X" indicates areas where values need to be calculated and filled in. This table is an exercise in allocating support department costs using the reciprocal services method in cost accounting. It demonstrates how to distribute expenses equitably between departments based on relevant cost drivers.

Janitorial Department = $ 310000 + ( 10 / 50 ) * Cafeteria Department Cafeteria Department = $…

Support department cost allocation-reciprocal services method Becker Tabletops has two support departments ( Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevant details for these departments are as follows: Support Department Cost Driver Janitorial Department Square footage to be serviced Cafeteria Department Number of employees Janitorial Cafeteria Cutting Assembly Department Department Department Department Department costs $310,000 $169,000 $1,504,000 $680,000 Square feet 50 5,000 1,000 4,000 Number of employees 10 30 10 Allocate the support department costs to the production departments using the reciprocal services method. Cutting Assembly Department Department Janitorial Department cost allocation Cafeteria Department cost allocation X $

Support department cost allocation-reciprocal services method Becker Tabletops has two support departments ( Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevant details for these departments are as follows: Support Department Cost Driver Janitorial Department Square footage to be serviced Cafeteria Department Number of employees Janitorial Cafeteria Cutting Assembly Department Department Department Department Department costs $310,000 $169,000 $1,504,000 $680,000 Square feet 50 5,000 1,000 4,000 Number of employees 10 30 10 Allocate the support department costs to the production departments using the reciprocal services method. Cutting Assembly Department Department Janitorial Department cost allocation Cafeteria Department cost allocation X $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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