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Allocate the service department costs to the two operating departments using the reciprocal method. Maintenance Processing Administration Total Allocated to: Costs Processing Administration Branches
Allocate the service department costs to the two operating departments using the reciprocal method. Maintenance Processing Administration Total Allocated to: Costs Processing Administration Branches Electronic Supplying Department Processing Using Department Processing Administration Maintenance Branches Electronic 0 50% 0 10% 40% Administration 0 0 0 60% 40% Maintenance 10% 15% 15% 60% Direct cost $82,000 $520,000 $240,000 $4,200,000 $1,600,000
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