Support Department Cost Allocation$$Reciprocal Services Method

Blue Africa Inc. produces laptops and desktop computers. The company$$s production activities mainly occur in what the company calls its Laser and Forming departments. The Cafeteria and Security departments support the company$$s production activities and allocate costs based on the number of employees and square feet, respectively. The total cost of the Security Department is $$255,000.$ The total cost of the Cafeteria Department is $$263,000.$ The number of employees and the square footage in each department are as follows:

Department Employees Square Feet

Security $10530$

Cafeteria $282,400$

Laser $404,800$

Forming $50800$