Start Here-Introduction to Man X* CengageNOwv2 | Online teachin xv.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=falseM GmailO YouTubeMaps I KOT4X Kings of Tra.A Tradingview * MindTap - Cengage..еВookShow Me HowCalculatorSupport Department Cost Allocation-Reciprocal Services MethodBrewster Toymakers Inc. produces toys for children. The toys are produced in the Molding and Assembly departments. The Janitorial and Securitydepartments support the production of the toys. Costs from the Janitorial Department are allocated based on square feet. Costs from the SecurityDepartment are allocated based on asset value. Relevant department information is provided in the following table:JanitorialSecurityMoldingAssemblyDepartment DepartmentDepartmentDepartmentSquare feet6501,6001,6004,800Asset value$200$220$1,800$2,000Department cost$2,000$1,600$10,800$12,200Using the reciprocal services method of support department cost allocation, determine:a. The percentage of Janitorial costs that should be allocated to the Security Department.%b. The percentage of Security costs that should be allocated to the Janitorial Department.%Check My WorkPreviousNextfa111Inumlkinsert8[9&bac46.845

Requirement a: Compute the percentage of janitorial 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. b. The percentage of Security costs that should be allocated to the Janitorial Department. %

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

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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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

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Calculator
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
Security
Molding
Assembly
Department Department
Department
Department
Square feet
650
1,600
1,600
4,800
Asset value
$200
$220
$1,800
$2,000
Department cost
$2,000
$1,600
$10,800
$12,200
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.
%
b. The percentage of Security costs that should be allocated to the Janitorial Department.
%
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