2 QUESTIONS

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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: Which of the following linear equations represents the complete reciprocated cost of the Data Processing Department? A. DP=$320,000+(750/17,500)DP B. DP=$95,000+(750/5,750)PM C. DP=$95,000+(3,300/17,500)PM D. DP=$95,000(750/5,750)+$320,000(3,300/17,500) Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $360,000 are allocated on the basis of budgeted maintenance - hours. Personnel Department costs of $170,000 are allocated based on the number of employees. The costs of operating departments A and B are $212,000 and $318,000, respectively. Data on budgeted. maintenance - hours and number of employees are as follows: Using the step - down method, what amount of Maintenance Department cost will be allocated to Department B if the service department with the highest percentage of interdepartmental support service is allocated first? (Do not round any intermediary calculations.) A. $37,638 B. $79,705 C. $33,210 D. $79,041