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AHMAD owns a factory that produces Fabric, this factory is using the reciprocal allocation method. The following data from operations were collected for analysis: Budgeted
AHMAD owns a factory that produces Fabric, this factory is 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 Q. Which of the following linear equations represents the complete reciprocated cost of the Plant Maintenance Department? DP= $75,000 x 600/4,700) + $350,000 x ((3,340/16,700 PM= $350,000 + (600/4,700) PM O DP= $75,000 + (3,500/16,700) PM O PM= $350,000 + (600/4,700) DP O
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