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Support Department Cost Allocation-Reciprocal Services Method Brewster Toymakers Inc. produces toys for children. The toys are produced in the Molding and Assembly departments. The Janitorial

image text in transcribed Support Department Cost Allocation-Reciprocal Services Method Brewster Toymakers Inc. produces toys for children. The toys are produced in the Molding and Assembly departments. The Janitorial and Security departments support the production of the toys. Costs from the Janitorial Department are allocated based on square feet. Costs from the Security Department are allocated based on asset value. Relevant department information is provided in the following table: Janitorial Department Security Department Molding Department Assembly Department Square feet 600 3,200 3,200 1,600 Asset value $180 $200 $2,820 $3,000 Department cost $2,100 $1,300 $11,000 $12,200 Using the reciprocal services method of support department cost allocation, determine: a. The percentage of Janitorial costs that should be allocated to the Security Department. 25 X % b. The percentage of Security costs that should be allocated to the Janitorial Department. 3 X % Feedback Check My Work One of the three methods commonly used for allocating support department costs to production is the reciprocal services method. The reciprocal services method considers all inter-support-department services, and thus is the most accurate of the three support department allocation methods

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