Multiple Choice
Alfred, owner of Hi-Tech Fiberglass Fabricators Inc. is interested in using the reciprocal allocation method. The following data from operations were collected for analysis:
Budgeted manufacturing overhead costs:
Plant Maintenance PM (Support Dept) $350,000
Data Processing DP (Support Dept) $ 75,000
Machining M (Operating Dept) $225,000
Capping C (Operating Dept) $125,000
Services furnished:
By Plant Maintenance (budgeted labor-hours):
to Data Processing 3,500
to Machining 5,000
to Capping 8,200
By Data Processing (budgeted computer time):
to Plant Maintenance 600
to Machining 3,500
to Capping 600
What is the complete reciprocated cost of the Data Processing Department?
a. $90,000
b. $118,750
c. $122,971
d. $152,432
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