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A company in Santa Clara would like to allocate costs incurred in two service departments -- Information Systems and Facilities. The two production departments, A
A company in Santa Clara would like to allocate costs incurred in two service departments -- Information Systems and Facilities. The two production departments, A and B. are supported by the two service departments. The source and usage of the service department are summarized as follows: To Information Systems From Information Systems Facilities Facilities 5,600 Department A 1.ee 6ee Department B 9,000 1,082 Total Labor Hours 15,880 2,68 480 The costs originally incurred in Information Systems are $162,000, and the costs originally incurred in Facilities are $67.000. Required: Calculate the total amount of Information Systems and Facilities department costs allocated to production departments using the reciprocal method. (Do not round Intermediate calculations. Round your final answer to nearest whole dollar amount.) Total service Total service costs allocated to costs allocated Department A to Department B The Reciprocal Method
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