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Reciprocal Allocation Method-Cost Accounting

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Reciprocal Allocation Method

Maintenance direct costs: $15,000
Personnel direct costs: $36,000
Printing direct costs: $45,000
Developing direct costs: $30,000

Machine Hours Labor-hours Dept. Costs
Maintenance 0 0% 500 $15,000
Personal 1000 0 0% $36,000
Printing 1000 500 $45,000
Development 3000 2000 $30,000
Total 5000 100% 3000 100%
What are the percentages?

s1 15000 + ? (s2)
s2 36000 + ? (s1)
What are the percentages for these equations?

Service Dept Production Dept
Maintenance Personnel Printing Developing
Service Dept. costs
Maintenance
Personnel
Total.

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Solution Summary

The solution allocation cost of service department using Reciprocal Allocation Method.

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