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Cost Allocation (Reciprocal Method): Department Allocation Basis Cost ($) Department A Number of Employees 300,000 Department B Square Footage 350,000 Allocate the costs between the

  1. Cost Allocation (Reciprocal Method):

Department

Allocation Basis

Cost ($)

Department A

Number of Employees

300,000

Department B

Square Footage

350,000

Allocate the costs between the departments using the reciprocal method. 

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