What is the total cost to be allocated from security

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Problem - Reciprocal Services Method of Support Department Cost Allocation - Maeser Productions, a film production company, allocates support activity costs to production activities using the reciprocal services method. Specifically, the costs from two support activities, security and meals, are allocated to the production activities of filming and makeup. Costs distributed to each department are provided in the following table, as are driver levels for each of the two support activities. Note that the security costs will be allocated based on asset value, and meal costs will be allocated based on headcount.

 

Security

Meals

Filming

Makeup

Asset value

$8,000

$100,000

$850,000

$50,000

Headcount

10

5

25

15

Department cost

$250,000

$465,000

$750,000

$67,000

Required -

a. What is the total cost to be allocated from Meals to the other three departments after all support department cost allocations are made?

b. What is the total cost to be allocated from Security to the other three departments after all support department cost allocations are made?

Reference no: EM132760946

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