Support department cost allocation—reciprocal services method Davis Snowflake & Co. produces Christmas stockings in its Cutting and Sewing departments. The Maintenance and Security departments support...


Support department cost allocation—reciprocal services method


Davis Snowflake & Co. produces Christmas stockings in its Cutting and Sewing departments. The Maintenance and Security departments support the production of the stockings. Costs from the Maintenance Department are allocated based on machine hours, and costs from the Security Department are allocated based on asset value. Information about each department is provided in the following table:


































Maintenance


Department

Security


Department

Cutting


Department

Sewing


Department
Machine hours8002,0006,80011,200
Asset value$2,000$1,380     $3,500$4,500
Department cost$30,240$13,440$67,000$85,000

Determine the total cost of each production department after allocating all support department costs to the production departments using the reciprocal services method.


















Cutting
Department


Sewing
Department

Production departmentsʼ total costs$fill in the blank 1$fill in the blank 2


Jun 11, 2022
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