Question
1. Jamison Company uses the reciprocal services method to allocate support department costs and has gathered the following information: Department Percentage Cafeteria 50% Cutting 10%
1. Jamison Company uses the reciprocal services method to allocate support department costs and has gathered the following information:
| Department | Percentage |
|---|---|
| Cafeteria | 50% |
| Cutting | 10% |
| Assembly | 40% |
| Department | Percentage |
|---|---|
| Janitorial | 20% |
| Cutting | 60% |
| Assembly | 20% |
Janitorial Department costs are $450,000.
Cafeteria Department costs are $250,000.
What is the total Janitorial Department cost using the reciprocal services method?
Round your answer to two decimal places. Total Janitorial Department cost ______________$
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Auditing Practices A Complete Guide
Authors: Gerardus Blokdyk
2023rd Edition
1038804450, 978-1038804457
