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Support Department Cost Allocaton-Reciprocal Services Method Biue Afice Inc. produces laptops and desktop computers. The companys production activties mainly occur in what the company calls
Support Department Cost Allocaton-Reciprocal Services Method Biue Afice Inc. produces laptops and desktop computers. The companys production activties mainly occur in what the company calls its Leser and Forming departments. The Cafetieria and Security departments support the cornpariy's production octivities and allocate costs based on the number of employees and square feet, respectively. The total cost or the Security Dopartment is $273,000. The total cost of the Cafeteria Department is $160,000. The number of employers and the square footage in each department are es follows: Using the reciprocal services method of support department cost allocation, determine the total costs from the Secunty Deparument that should of allocated to the Cofeteria Department and to each of the production departmerits
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