Determine the percentage of Security costs

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Problem - Brewster Toymakers Inc. produces toys for children. The toys are produced in the Molding and Assembly departments. The Janitorial and Security departments support the production of the toys. Costs from the Janitorial Department are allocated based on square feet. Costs from the Security Department are allocated based on asset value. Relevant department information is provided in the following table:

 

Janitorial Department

Security Department

Molding Department

Assembly Department

Square feet

650

1,600

1,600

4,800

Asset value

$200

$220

$1,800

$2,000

Department cost

$2,000

$1,600

$10,800

$12,200

Using the reciprocal services method of support department cost allocation, determine

(a) the percentage of Janitorial costs that should be allocated to the Security Department

(b) the percentage of Security costs that should be allocated to the Janitorial Department.

Reference no: EM132716239

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