chp 19 question 3

B/ue Africa tnc, produces lentops and desktop computers, The company's production activilies mainly accur in what the company calis its Laser and forming departments The Cafeteria and Security departments support the companys production activities and allocate costs based on the fumber of empiayees and square feet, respecively. The total cost of the Secunty Department is $268,000. The socal cost of the Cafeteria Department is 9618,000 . The number of emolorets and the souare footage in aach department are as follewsi Using the reciprocal services method of support department cost allocation, determine the total costs trom the Security Department that should be ailscated to the Cafeteria Department and to each of the producticn departments. Faednach Torma My Wosk The reciprocal services method considers all inter-support-department services, and thus is the most accurate of the thee support department aliocation methods. The proportional usage of each support depsrtment's cost deiver by the other departments to which its costs are to be alocated must be deterininet. Then, the support department costs are allocated simultaneously arsang the depsrtments