Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Support Department Cost AllocationReciprocal Services Method Blue Africa Inc. produces laptops and desktop computers. The companys production activities mainly occur in what the company calls

Support Department Cost AllocationReciprocal Services Method Blue Africa Inc. produces laptops and desktop computers. The companys production activities mainly occur in what the company calls its Laser and Forming departments. The Cafeteria and Security departments support the companys 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 $457,000. The number of employees and the square footage in each department are as follows: Employees Square Feet Security Department 10 600 Cafeteria Department 28 2,400 Laser Department 40 4,800 Forming Department 50 800 Using the reciprocal services method of support department cost allocation, determine the total costs from the Security Department that should be allocated to the Cafeteria Department and to each of the production departments. Cafeteria Department Laser Department Forming Department Security Department cost allocation $fill in the blank 1 714,000 $fill in the blank 2 124,800 $fill in the blank 3 153,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

ISE Fundamental Managerial Accounting Concepts

Authors: Thomas P. Edmonds, Christopher Edmonds, Mark A. Edmonds, Philip R. Olds

10th Edition

1265045925, 9781265045920

More Books

Students also viewed these Accounting questions

Question

=+What category does this metric represent?

Answered: 1 week ago