Question
Alfred, owner of HiminusTech Fiberglass Fabricators, Inc., is interested in using the reciprocal allocation method. The following data from operations were collected for analysis: Budgeted
Alfred, owner of HiminusTech 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) | $320,000 | |
Data Processing DP (Support Dept) | $55,000 | |
Machining M (Operating Dept) | $215,000 | |
Capping C (Operating Dept) | $110,000 | |
Services furnished: | ||
By Plant Maintenance (budgeted laborminushours): | ||
to Data Processing | 3,400 | |
to Machining | 5,800 | |
to Capping | 8,900 | |
By Data Processing (budgeted computer time): | ||
to Plant Maintenance | 1,100 | |
to Machining | 3,550 | |
to Capping | 550 |
What is the complete reciprocated cost of the Plant Maintenance Department? (Do not round any intermediary calculations.)
The highlighted portion above is the question being asked. I have seen this similar problem asked before but the steps are unclear to me and I need a lot better guidance on this problem. Please help as much as possible and explain everything as simple and clear as possible. I am TERRIBLE with cost accounting. Please and thank you!
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