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Support department cost allocationreciprocal services method Becker Tabletops has two support departments ( Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevant details
Support department cost allocationreciprocal services method
Becker Tabletops has two support departments ( Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevant details for these departments are as follows:
Support Department | Cost Driver | |
Janitorial Department | Square footage to be serviced | |
Cafeteria Department | Number of employees |
Janitorial Department | Cafeteria Department | Cutting Department | Assembly Department | |
Department costs | $310,000 | $169,000 | $1,504,000 | $680,000 |
Square feet | 50 | 5,000 | 1,000 | 4,000 |
Number of employees | 10 | 3 | 30 | 10 |
Allocate the support department costs to the production departments using the reciprocal services method.
Cutting Department | Assembly Department | |||
Janitorial Department cost allocation | $ | $ | ||
Cafeteria Department cost allocation | $ | $ |
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