Alfred, owner of

HiTech

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)	$370,000
Data Processing DP (Support Dept)	$70,000
Machining M (Operating Dept)	$235,000
Capping C (Operating Dept)	$110,000
Services furnished:
By Plant Maintenance (budgeted laborhours):
to Data Processing	3,900
to Machining	5,100
to Capping	8,100
By Data Processing (budgeted computer time):
to Plant Maintenance	700
to Machining	3,500
to Capping	650

Which of the following linear equations represents the complete reciprocated cost of the Data Processing Department?

A.

DP= $70,000 + (3,900/ 17,100) PM

B.

DP= $70,000 + (700 / 4,850) PM

C.

DP= $70,000

(700 / 4,850) + $370,000

(3,900 / 17,100)

D.

DP= $370,000 + (700 / 17,100) DP