Farmington Components has two production departments (Fabrication and Assembly) and three service departments (Engineering, Administration, and Maintenance). During July, the following costs and service department usage ratios were recorded

Problem 11-52 Cost Allocation: Step and Reciprocal Methods (LO 11-3, 4)

Farmington Components has two production departments (Fabrication and Assembly) and three service departments (Engineering, Administration, and Maintenance). During July, the following costs and service department usage ratios were recorded:

	Using Department
Supplying
Department	Engineering			Administration			Maintenance			Fabrication			Assembly
Engineering		0			40	%		0			15	%		45	%
Administration		20	%		0			10	%		50	%		20	%
Maintenance		0			30	%		0			15	%		55	%
Direct cost	$	42,000		$	90,740		$	45,000		$	230,000		$	80,000

Required:

Allocate the service department costs to the two operating departments using the reciprocal method. (Do not Round your intermediate calculations. Round your answers to nearest whole dollar.)

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