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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

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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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
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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