Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Blue Africa Inc. produces laptops and desktop computers. The company's production activities mainly occur in wilat the company calls its Laser and Forming departme The
Blue Africa Inc. produces laptops and desktop computers. The company's production activities mainly occur in wilat the company calls its Laser and Forming departme The Cafeteria and Security departments support the company's production activities and allocate costs basted on the number of employents and square feet, respectivel The total cost of the Security Department is $264,000. The total cost of the Cafeteria Department is $270,000, The number of employees and the square footage in ex department are as follows: Using the reciprocal services method of support department cost allocation, determine the total costs from the Security Department that should be allocated to the Cafeteria Department and to each of the production departments. Feedback Theck My Work The reciprocal services method considers all inter-support-department services, and thus is the-most accurate of the three support department allocation methods. The proportional usage of each support department's cost driver by the other departments to which its costs are to be aliocated must be determine Then, the support department costs are allocated simultaneously among the departments
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started