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Support Department Cost AllocationReciprocal Services Method Blue Africa Inc. produces laptops and desktop computers. The...

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Accounting

Support Department Cost AllocationReciprocal Services Method

Blue Africa Inc. produces laptops and desktop computers. The companys production activities mainly occur in what the company calls its Laser and Forming departments. The Cafeteria and Security departments support the companys production activities and allocate costs based on the number of employees and square feet, respectively. The total cost of the Security Department is $246,000. The total cost of the Cafeteria Department is $450,000. The number of employees and the square footage in each department are as follows:

Department Employees Square Feet
Security 10 570
Cafeteria 24 2,400
Laser 40 3,200
Forming 50 2,400

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.

Line Item Description Cafeteria Department Laser Department Forming Department
Security Department cost allocation $fill in the blank $fill in the blank $fill in the blank

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