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Reciprocal Method of Support Department Cost Allocation Chekov Company has two support departments, Human...

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Accounting

Reciprocal Method of Support Department Cost Allocation
Chekov Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly.
Support Departments Producing Departments
Human
Resources General
Factory Fabricating Assembly
Direct costs $140,000 $360,000 $114,200 $94,000
Normal activity:
Number of employees 604580
Square footage 1,5006,00014,000
The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footage.
Now assume that Chekov Company uses the reciprocal method to allocate support department costs.
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