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Exercise 1 1 - 3 2 ( Algo ) Cost Allocation: Reciprocal Method ( LO 1 1 - 1 ) Woodstock Binding has two service

Exercise 11-32(Algo) Cost Allocation: Reciprocal Method (LO 11-1)
Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department.
The following data appear in the company records for the current period:
IT HR Publishing Binding
IT tickets 01,5652,5042,191
Employees 2203355
Department direct costs $ 155,200 $ 248,670 $ 432,600 $ 396,500
Required:
Allocate the service department costs using the reciprocal method. (Matrix alFrom: Cost Allocation To:
IT HR Publishing Binding
Service department costs
IT
HR
Totalgebra is not rFrom: Cost Allocation To:
IT HR Publishing Binding
Service department costs
IT
HR
Totalequired because there are only two service departments.)

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