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Bolton Trucking is divided into two operating divisions: Perishable Foods and Household Goods. The company allocates Personnel and Accounting Department costs to each operating
Bolton Trucking is divided into two operating divisions: Perishable Foods and Household Goods. The company allocates Personnel and Accounting Department costs to each operating division. Personnel costs are allocated on the basis of the number of employees and Accounting costs on the basis of the number of transactions processed. The data concerning the four departments are as follows: Support Departments Operating Divisions Perishable Household Personnel Accounting Foods Goods Overhead costs $10,000 $20,000 $25,000 $18,000 Number of employees 50 60 60 80 Transaction processed 300 500 450 750 All numbers are rounded to four (4) decimal places if necessary. Assume that total costs to be allocated from Personnel and Accounting Departments after considering their reciprocal services are found $14,894 and $24,468, respectively. What would be the total cost accumulated in Household Goods Department after the completion of service cost allocation with the reciprocal method?
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