The value of center distance.

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Chapter 46, Problem 56A

To determine

The value of center distance.

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eBook Print Item Question Content Area Support Department Cost Allocation—Reciprocal Services Method Blue Africa Inc. produces laptops and desktop computers. The company’s production activities mainly occur in what the company calls its Laser and Forming departments. The Cafeteria and Security departments support the company’s production activities and allocate costs based on the number of employees and square feet, respectively. The total cost of the Security Department is $261,000. The total cost of the Cafeteria Department is $300,000. The number of employees and the square footage in each department are as follows: Department Employees Square Feet Security 10 570 Cafeteria 28 2,400 Laser 40 4,800 Forming 50 800 Using the reciprocal services method of support department cost allocation, determine the total costs from the Security Department that should be allocated to…

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