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   Molding Department   Assembly Department Square feet 630      1,800      1,800      5,400    Asset value $120      $140      $1,380      $1,500    Department cost $2,000      $1,200      $10,400      $12,700    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. fill in the blank 1% b. The percentage of Security costs that should be allocated to the Janitorial Department.

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Chapter1: Financial Statements And Business Decisions
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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
  Molding
Department
  Assembly
Department
Square feet 630      1,800      1,800      5,400   
Asset value $120      $140      $1,380      $1,500   
Department cost $2,000      $1,200      $10,400      $12,700   

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.
fill in the blank 1%

b. The percentage of Security costs that should be allocated to the Janitorial Department.
fill in the blank 2%

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