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Support department cost allocation - reciprocal services method Davis Snowflake & Co . produces Christmas stockings in its Cutting and Sewing departments. The Maintenance and

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Support department cost allocation-reciprocal services method
Davis Snowflake & Co. produces Christmas stockings in its Cutting and Sewing departments. The Maintenance and Security departments support the production of the stockings. Costs from the Maintenance Department are allocated based on machine hours, and costs from the Security Department are allocated based on asset value. Information about each department is provided in the following table:
\table[[,\table[[Maintenance],[Department]],\table[[Security],[Department]],\table[[Cutting],[Department]],\table[[Sewing],[Department]]],[Machine hours,800,2,000,7,200,10,800],[Asset value,$2,000,$1,670,$2,500,$5,500
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