Support Department Cost AlocationRaciprocal Services Method Blue Aica Inc. produces laptops and desktop computers. The company's production activities mainly occur in what the company calls its Laser and Forming departments. The Cafeteria and Security departments support the company's production activities and allocate costs based on the number of emplovees and souare feet, respectively. The total cost of the Security Department is 27.000. The total cost of the Cafeteria Departmentis $628,000. The number of employees and the square footage in each department are as folows Employees Square Feet Security Departme Cafeteria Department 10 S60 18 2,400 Laser Department 40 2,400 Forming Department s0 3,200 Using the reciprocal services method of spport department cost allecation, determine the total costs from the Security Department that should be allocated to the Cafeteria Department and to each of the production departments Cafeteria Laser Forming Department Department Deportment Security Department cost allocation 102,000 204,000 X 34,000 X
Support Department Cost AlocationRaciprocal Services Method Blue Aica Inc. produces laptops and desktop computers. The company's production activities mainly occur in what the company calls its Laser and Forming departments. The Cafeteria and Security departments support the company's production activities and allocate costs based on the number of emplovees and souare feet, respectively. The total cost of the Security Department is 27.000. The total cost of the Cafeteria Departmentis $628,000. The number of employees and the square footage in each department are as folows Employees Square Feet Security Departme Cafeteria Department 10 S60 18 2,400 Laser Department 40 2,400 Forming Department s0 3,200 Using the reciprocal services method of spport department cost allecation, determine the total costs from the Security Department that should be allocated to the Cafeteria Department and to each of the production departments Cafeteria Laser Forming Department Department Deportment Security Department cost allocation 102,000 204,000 X 34,000 X
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter5: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 3E: Blue Africa Inc. produces laptops and desktop computers. The companys production activities mainly...
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