# Support Department Cost Allocation—Reciprocal Services MethodBlue Africa 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 employees and square feet, respectively. The total cost of the Security Department is \$253,000. The total cost of the Cafeteria Department is \$283,000. The number of employees and the square footage in each department are as follows: Employees Square FeetSecurity Department10        560        Cafeteria Department18        2,400        Laser Department40        2,400        Forming Department50        3,200        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. CafeteriaDepartment LaserDepartment FormingDepartmentSecurity Department cost allocation\$ \$ \$

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Support Department Cost Allocation—Reciprocal Services Method

Blue Africa 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 employees and square feet, respectively. The total cost of the Security Department is \$253,000. The total cost of the Cafeteria Department is \$283,000. The number of employees and the square footage in each department are as follows:

 Employees Square Feet Security Department 10 560 Cafeteria Department 18 2,400 Laser Department 40 2,400 Forming Department 50 3,200

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.

 CafeteriaDepartment LaserDepartment FormingDepartment Security Department cost allocation \$ \$ \$
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