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1. what is the true cost (complete reciprocated cost) of the plant maintenance department? 2. what is the true cost (complete reciprocated cost) of the

1. what is the true cost (complete reciprocated cost) of the plant maintenance department?
2. what is the true cost (complete reciprocated cost) of the data processing department?
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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) Data Processing DP (Support Dept) Machining M (Operating Dept) Capping C (Operating Dept) $350,000 $ 75,000 $225,000 $125,000 Services furnished: By Plant Maintenance (budgeted labor-hours): to Data Processing 3,500 labor-hours to Machining 5,000 labor-hours to Capping 8,200 labor-hours By Data Processing (budgeted computer hours): to Plant Maintenance 600 computer hours to Machining 3,500 computer hours to Capping 600 computer hours

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