Support Department Cost Allocation-Reciprocal Services Method Brewster Toymakers Inc. produces toys for children. The toys are produced in the Molding and Assembly departments. The Janitorial and Security departments support the production of the toys. Costs from the Janitorial Department are allocated based on square feet. Costs from the Security Department are allocated based on asset value. Relevant department information is provided in the following table: Janitorial Department Security Department 600 $250 $1,800 Molding Department Square feet 3,600 Asset value $2,250 Department cost $10,500 Using the reciprocal services method of support department cost allocation, determine: a. The percentage of Janitorial costs that should be allocated to the Security Department. 3,600 $270 $1,100 Assembly Department 1,800 $2,500 $12,200 b. The percentage of Security costs that should be allocated to the Janitorial Department
Support Department Cost Allocation-Reciprocal Services Method Brewster Toymakers Inc. produces toys for children. The toys are produced in the Molding and Assembly departments. The Janitorial and Security departments support the production of the toys. Costs from the Janitorial Department are allocated based on square feet. Costs from the Security Department are allocated based on asset value. Relevant department information is provided in the following table: Janitorial Department Security Department 600 $250 $1,800 Molding Department Square feet 3,600 Asset value $2,250 Department cost $10,500 Using the reciprocal services method of support department cost allocation, determine: a. The percentage of Janitorial costs that should be allocated to the Security Department. 3,600 $270 $1,100 Assembly Department 1,800 $2,500 $12,200 b. The percentage of Security costs that should be allocated to the Janitorial Department
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Support Department Cost Allocation-Reciprocal Services Method
Brewster Toymakers Inc. produces toys for children. The toys are produced in the Molding and Assembly departments. The Janitorial and Security departments support
the production of the toys. Costs from the Janitorial Department are allocated based on square feet. Costs from the Security Department are allocated based on asset
value. Relevant department information is provided in the following table:
Janitorial
Department
Security Molding
Department Department
600
$250
$1,800
Square feet
Asset value
Department cost
Using the reciprocal services method of support department cost allocation, determine:
a. The percentage of Janitorial costs that should be allocated to the Security Department.
3,600
$270
$1,100
3,600
$2,250
$10,500
Assembly
Department
1,800
$2,500
$12,200
b. The percentage of Security costs that should be allocated to the Janitorial Department
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