Farmington Components has two production departments (Fabrication and Assembly) and three service departments (Engineering, Administration, and Maintenance). During July, the following costs and service department usage ratios were recorded:

Required
Allocate the service department costs to the two operating departments using the reciprocalmethod.

Transcribed Image Text:

Using Department Supplying Department Engineering Administration Maintenance Fabrication Assembly 40% 20% 50% 50% Engineering..·.. Administration Maintenance. Direct cost 1 090 50% 30% 20% 10% 200,000 $950.000 $250,000 $1.750.000 5500.00 20%