# Support Department Cost Allocation—Reciprocal Services MethodBrewster 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 SecurityDepartment MoldingDepartment AssemblyDepartmentSquare feet600    900    900    7,200   Asset value\$400    \$420    \$2,100    \$2,500   Department cost\$1,700    \$1,400    \$10,400    \$12,500   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. %b. The percentage of Security costs that should be allocated to the Janitorial Department. %

Question
Asked Oct 23, 2019
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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 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 SecurityDepartment MoldingDepartment AssemblyDepartment Square feet 600 900 900 7,200 Asset value \$400 \$420 \$2,100 \$2,500 Department cost \$1,700 \$1,400 \$10,400 \$12,500

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.
%

b. The percentage of Security costs that should be allocated to the Janitorial Department.
%

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Step 1

a. Calculate the percentage of janitorial cost that should be allocated to the security department.

Step 2

b. Calculate the percentage of security cost that should be a...

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