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Support Department Cost Allocation$-$Reciprocal Services Method

Blue Africa Inc. produces laptops and desktop computers. The company's production activities mainly occur in what the company calls its Laser and forming departments The are as follows:

$\backslash$table$[[$Department$,$Employees,Square Feet$],[$Security$,10,590],[$Cafeteria$,24,2,400],[$Laser$,40,4,000],[$Forming$,50,1,600]]$

Support Department Cost Allocation$-$Reciprocal Services Method

Blue Africa Inc. produces laptops and desktop computers. The company's production activities mainly occur in what the company calls its Laser and Forming departments. The

Cafeteria and Security departments support the company's production activities and allocate costs based on the number of employees and square feet, respectively. The total

cost of the Security Department is $$273,000.$ The total cost of the Cafeteria Department is $$180,000.$ The number of employees and the square footage in each 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.