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B- 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:
B- 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: $370,000 $70,000 $235,000 $110,000 Budgeted manufacturing overhead costs: Plant Maintenance PM (Support Dept) Data Processing DP (Support Dept) Machining M (Operating Dept) Capping C(Operating Dept) Services furnished: By Plant Maintenance (budgeted labor-hours): to Data Processing to Machining to Capping By Data Processing (budgeted computer time): to Plant Maintenance to Machining to Capping 3900 5100 8100 700 3500 650 Which of the following linear equations represents the complete reciprocated cost of the Data Processing Department? A) DP-$70,000 + (3900/ 17,100) PM B) DP-$70,000 + (700 / 4850) PM C) DP-$370,000 + (700/17,100) DP D) DP- $70,000 X (700 / 4850) + $370,000 (3900 / 17,100)
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