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eBook Support department cost allocation-reciprocal services method Jolly Roger Rafa, Inc., produces tennis racquets. The tennis racquets are produced in the Cutting and Assembly departments.

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eBook Support department cost allocation-reciprocal services method Jolly Roger Rafa, Inc., produces tennis racquets. The tennis racquets are produced in the Cutting and Assembly departments. The production of the tennis racquets is supported by the Janitorial and Cafeteria departments. Janitorial Department costs are allocated to the production departments based on square feet. The Cafeteria Department costs are allocated based on number of employees. Department information is summarized in the following table: Janitorial Cafeteria Cutting Assembly Department Department Department Department Square feet 200 500 1,000 1,000 Number of employees Department cost $3,030 $4,000 $25,000 $19,000 Using the reciprocal services method, find the total cost to be allocated from the Cafeteria Department to the other three departments after all support department cost allocations are made, and the total cost to be allocated from the Janitorial Department to the other three departments after all support department cost allocations are made. Department Total Cost Cafeteria Department 27,810 X Janitorial Department 23,220 X Feedback Check My Work The reciprocal services method considers all inter-support-department services, and thus is the most accurate of the three support department allocation methods. The proportional usage of each support department's cost driver by the other departments to which its costs are to be allocated must be determined. Then, the support department costs are allocated simultaneously among the departments

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