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Costs based on the number of employees and square feet, respectively. The total cost of the Security Department is $283,000. The total cost of the Cafeteria Department is $185,000.
The number of employees and the square footage in each department are as follows:
Department Employees Square FeetSecurity 15 585Cafeteria 27 2,500Laser 38 4,200Forming 42 1,550
Problem 1: 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.
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