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10 550 Support Department Cost Allocation-Reciprocal Services Method Blue Africa Inc. produces laptops and desktop...

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10 550 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 Secunty Department is $266,000. The total cost of the Cafeteria Department is $541,000. The number of employees and the square footage in each department are as follows: Employees Square Feet Security Department Cafeteria Department 2,400 Laser Department 4,800 Forming Department 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, Cafeteria Laser Forming Department Department Department Security Department cost allocation 22 40 50 800

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