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Support department cost allocationreciprocal services method Temple Lights, Inc. produces Hanukkah menorahs in its Cutting...

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Accounting

Support department cost allocationreciprocal services method

Temple Lights, Inc. produces Hanukkah menorahs in its Cutting and Molding departments. The Maintenance and Security departments support the production of the menorahs. 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:

Line Item Description Maintenance Department Security Department Cutting Department Molding Department
Machine hours 800 2,000 7,600 10,400
Asset value $2,000 $1,400 $2,000 $6,000
Department cost $41,760 $18,560 $67,000 $83,000

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

Line Item Description Cutting Department Molding Department
Production departments' total costs $fill in the blank 1 $fill in the blank 2

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