Xaric Industries operates two support departments, Personnel and Accounting, and two producing departments, Fabrication and Assembly. Information on the support percentages and cost for each department is as follows: Using the reciprocal method of allocating support costs, what is the total cost allocated from the Personnel Department?

Question

Xaric Industries operates two support departments, Personnel and Accounting, and two producing departments, Fabrication and Assembly. Information on the support percentages and cost for each department is as follows:  Using the reciprocal method of allocating support costs, what is the total cost allocated from the Personnel Department?

Quizplus · Accepted Answer

($15,000 + (.06 x $8,000)) ÷ (1-(.06 * .10)) = $15,573
 Per Op Costs + (Per % of acct x Acct op costs) ÷ (1 - (per % of Acct x Acct % of per)) = cost from per

Xaric Industries Operates Two Support Departments, Personnel and Accounting, and Two