Question
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
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) | $300,000 | |
Data Processing DP (Support Dept) | $55,000 | |
Machining M (Operating Dept) | $235,000 | |
Capping C (Operating Dept) | $145,000 | |
Services furnished: | ||
By Plant Maintenance (budgeted laborhours): | ||
to Data Processing | 3,000 | |
to Machining | 5,100 | |
to Capping | 8,900 | |
By Data Processing (budgeted computer time): | ||
to Plant Maintenance | 600 | |
to Machining | 3,600 | |
to Capping | 1,000 |
What is the complete reciprocated cost of the Data Processing Department? (Do not round any intermediary calculations.)
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