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During the past month, the following costs were incurred in the three production departments and two service department of Kim Co. Administration Supplying Department Administration

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During the past month, the following costs were incurred in the three production departments and two service department of Kim Co. Administration Supplying Department Administration Factory support Direct cost Using Department Factory Support Fabrication Assembly Finishing 0.40 0.20 0.10 0.30 0.10 0.20 0.60 $1,340,000 $1,740,000 $286,000 $256,000 0.10 $660,000 Required: Allocate service department costs to Fabrication, Assembly, and Finishing using the reciprocal method, and determine the total costs of Fabrication, Assembly, and Finishing after this allocation. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Administration Finishing $ 660,000 0 $ 0 From: Service department COSES Administration Factory support Total allocations Answer is complete but not entirely correct. Cost Allocation To: Factory Support Fabrication Assembly 1,340,000 $ IS 0 330.833 165.417 82,708 0 % 1,670,833 $ 165,417 S 82,708 0 1,740,000 286,000 1,670,833 $ 1,905,417 $ 368,708 (827,083) 248,125 0 X O X $ (167,083) S S Direct costs 0 248,125 256,000 504,125 Total costs (167,083) S $

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