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JKL Corporation has three service departments, Maintenance, IT, and HR, and two production departments, Assembly and Packaging. The following table shows the costs incurred in


  • JKL Corporation has three service departments, Maintenance, IT, and HR, and two production departments, Assembly and Packaging. The following table shows the costs incurred in each department:

    DepartmentMaintenance ($)IT ($)HR ($)Total Allocation ($)
    Maintenance-5,0006,00020,000
    IT4,000-7,00025,000
    HR6,0007,000-30,000
    Assembly20,00025,00030,000-
    Packaging15,00020,00025,000-

    Allocate the service department costs to the production departments using the reciprocal method.

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