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Allocate the service department costs to the two operations

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Question - Off The Wall Canine Rescue has two Operations departments (local and national) and three service departments (Rescue Intake, Training, and Grooming). During July, the following costs and service department usage ratios were recorded:

Supplying Department

Using Department

Rescue Intake

Training

Grooming

Local

National

Rescue Intake

0

60

0

20

20

Training

15%

0

10%

50%

25%

Grooming

0

20%

0

20%

60%

Direct cost

$52,000

$298,000

$45,000

$255,000

$90,000

Required: Allocate the service department costs to the two operations departments using the reciprocal method.

Reference no: EM131665486

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