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Bens Corporation has three service departments (Repairs, HR, and IT) and two production departments (M1...

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Accounting

Bens Corporation has three service departments (Repairs, HR, and IT) and two production departments (M1 and M2). The following usage data for each of the service departments for the previous period follow.

Repairs HR IT M1 M2
Repairs 0 % 0 % 40 % 60 %
HR 10 % 20 % 35 % 35 %
IT 0 % 10 % 20 % 70 %

The direct costs of the service departments in the previous period were $28,000 for Repairs, $55,440 for HR, and $63,000 for IT.

Required:

Use the reciprocal method to allocate the service department costs to the production departments. (Matrix algebra is not required.) (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.)

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Repairs HR IT M1 M2 Service department costs Repairs allocation HR allocation IT allocation Total costs allocated $ 0 $ 0 $ $ 0 $

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