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Show working Allocate the two support departments' costs to the two operating departments using he Algebraic/reciprocal method. Materials Requisitions (MR) Utility Services (US) Machining Assembly
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Allocate the two support departments' costs to the two operating departments using he Algebraic/reciprocal method.
| Materials Requisitions (MR) | Utility Services (US) | Machining | Assembly | Total | |
| Budgeted overhead costs before any inter-department cost allocations | $200,000 | $1,000,000 | $5,456,000 | $7,458,000 | $14,114,000 |
| Support work supplied by MR (Number of requisitions) | 0 | 25% | 40% | 35% | 100% |
| Support work supplied by US (Power costs) | 10% | 0 | 30% | 60% | 100% |
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Human Resource Management
Authors: Robert L. Mathis, John H. Jackson
13th Edition
053845315X, 978-0538453158
