7 ! Required information Problem 11-64 (Algo) Allocate Service Department Costs: Ethical Issues (LO 11-2, 3, 4) {The following information applies to the questions displayed below.) eBook o References Fifth Street Publishing (FSP) was founded many years ago as a printing cooperative offering printing services to members, Most members were charitable and religious organizations. Ten years ago, FSP became a for-profit corporation, although it retained its commitment to the original member groups. It has two production departments, Member and Commercial. The Member Department handles printing jobs for nonprofit groups and Commercial serves the remaining customers. FSP is organized this way to facilitate its billing: FSP charges nonprofit customers a price equal to the full cost of the job, including allocated overhead; commercial jobs are priced based on what the market will bear. FSP has two service departments, Accounting and Computer Services (CS). Accounting costs are allocated based on number of employees, and CS costs are allocated based on computer time (hours). Selected percentage use data follow: Supplying Department Accounting (employees) Computer Services (hours) Direct cost Using Department Computer Accounting Services Member 08 20% 10% 60% 0% 10% $12,000 $37,000 $110,000 Commercial 70% 30% $370,000 Problem 11-64 (Algo) Parte e. The controller next asks the cost accountant to allocate the costs using the reciprocal method. What is the amount of service department costs that will be allocated to each of the production departments? (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign.) Accounting Computer service Member Department Commercial Department From: Service dept. costs - Before allocation . - Accounting Computer service Total