To determine Use the reciprocal method to allocate service costs. Explanation Reciprocal method: The reciprocal method recognizes the cost allocation to the service departments like step method. It allocates cost to the service department and production department of the business. Unlike the step method, the reciprocal method allows the two-way allocation of cost among the service department. Calculate the allocation of the service costs: Particular Maintenance Cafeteria Machining Assembly Service department cost $40,000 $32,000 Maintenance (1) $(78,095) $15,619 $39,048 $23,428 Cafeteria(2) $38,095 $(47,619) $4,762 $4,762 Total cost allocation $0 $0 $43,810 $28,190 Table: (1) Thus, the service cost is allocated in the proposition of $28,190 and $43,810. It will be zero for maintenance and cafeteria. Working note 1: Calculate the allocation of maintenance costs: Particular Maintenance cost (3) Allocation Amount Allocation to maintenance cost : Maintenance department $78,095 1 $(78,095.00) Cafeteria department $78,095 0.2 $15,619 Machining department $78,095 0.5 $39,048 Assembly department $78,095 0.3 $23,429 Table: (2) Working note 2: Calculate the allocation of cafeteria costs: Particular Cafeteria cost (3) Allocation Amount Allocation of cafeteria cost: Maintenance department $47,619 0...

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Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

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Chapter 11, Problem 32E

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Use the reciprocal method to allocate service costs.

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Chapter 11, Problem 31E

Chapter 11, Problem 33E

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Chapter 11 Solutions

Fundamentals of Cost Accounting

Ch. 11 - Why do companies allocate costs? What are some of...Ch. 11 - What are the three methods of allocating service...Ch. 11 - What are the similarities and differences among...Ch. 11 - What criterion should be used to determine the...Ch. 11 - What is a limitation of the direct method of...Ch. 11 - What is a limitation of the step method of...Ch. 11 - Prob. 7RQ Ch. 11 - Why would a number of accountants express a...Ch. 11 - Prob. 9RQ Ch. 11 - What is the basic difference between the...

Ch. 11 - Prob. 11RQ Ch. 11 - If cost allocations arc arbitrary and potentially...Ch. 11 - Prob. 13CADQ Ch. 11 - Prob. 14CADQ Ch. 11 - Prob. 15CADQ Ch. 11 - Prob. 16CADQ Ch. 11 - Prob. 17CADQ Ch. 11 - Prob. 18CADQ Ch. 11 - What are some of the factors that a company needs...Ch. 11 - Prob. 20CADQ Ch. 11 - Prob. 21CADQ Ch. 11 - Prob. 22CADQ Ch. 11 - How is joint cost allocation like service...Ch. 11 - Prob. 24CADQ Ch. 11 - In what ways is joint cost allocation similar to...Ch. 11 - Why Are Costs Allocated?Ethical Issues You are the...Ch. 11 - Cost Allocation: Direct Method Caro Manufacturing...Ch. 11 - Allocating Service Department Costs First to...Ch. 11 - Cost Allwat ion: Direct Method University Printers...Ch. 11 - Prob. 30E Ch. 11 - Cost Allocation: Step Method Refer to the data for...Ch. 11 - Cost Allocation: Reciprocal Method Refer to the...Ch. 11 - Cost Allocation: Reciprocal Method, Two Service...Ch. 11 - Cost Allocation: Reciprocal Method Refer to the...Ch. 11 - Prob. 35E Ch. 11 - Prob. 36E Ch. 11 - Prob. 37E Ch. 11 - Prob. 38E Ch. 11 - Prob. 39E Ch. 11 - Prob. 40E Ch. 11 - Net Realizable Value Method: Multiple Choice Oak...Ch. 11 - Sell or Process Further: Multiple Choice Refer to...Ch. 11 - Net Realizable Value Method Euclid Corporation...Ch. 11 - Estimated Net Realizable Value Method Blasto,...Ch. 11 - Net Realizable Value Method to Solve for Unknowns...Ch. 11 - Net Realizable Value Method Bixel Components...Ch. 11 - Net Realizable Value Method with By-Products...Ch. 11 - Net Realizable Value Method Deming Sons...Ch. 11 - Physical Quantities Method Refer to the facts in...Ch. 11 - Sell or Process Further Refer to the facts in...Ch. 11 - Physical Quantities Method The following questions...Ch. 11 - Physical Quantities Method; Sell or Process...Ch. 11 - Physical Quantities Method with By-Product...Ch. 11 - Step Method with Three Service Departments Model,...Ch. 11 - Comparison of Allocation Methods BluStar Company...Ch. 11 - Solve for Unknowns: Direct Method Franks Foods has...Ch. 11 - Solve for Unknowns: Step Method RT Renovations is...Ch. 11 - Cost Allocation: Step Method with Analysis and...Ch. 11 - Prob. 59P Ch. 11 - Prob. 60P Ch. 11 - Direct, Step, and Reciprocal Methods:...Ch. 11 - Cost Allocation: Step and Reciprocal Methods...Ch. 11 - Allocate Service Department Costs: Direct and Step...Ch. 11 - Prob. 64P Ch. 11 - Prob. 65P Ch. 11 - Prob. 66P Ch. 11 - Prob. 67P Ch. 11 - Prob. 68P Ch. 11 - Fletcher Fabrication, Inc., produces three...Ch. 11 - Findina Missing Data: Net Realizable Value Spartan...Ch. 11 - Finding Missing Data: Net Realizable Value Blaine,...Ch. 11 - Joint Costing in a Process Costing Context:...Ch. 11 - Find Maximum Input Price: Estimated Net Realizable...Ch. 11 - Effect of By-Product versus Joint Cost Accounting...Ch. 11 - Prob. 75P Ch. 11 - Prob. 76P

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