CustomBoatManufacturingCompanymakescustomisedboatsanduses a jobcostingsystem.The company has two support departments (administration and security) and twomanufacturingdepartments(machiningandassembly).Thefollowingtableshowsthetotaloverheadcostsofmanufacturingdepartments afterthe supportdepartments'costshavebeenallocated underthreecostallocation methods.

CostAllocationMethod	MachiningDepartmentCost	AssemblyDepartmentCost
DirectMethod	$8,650,000	$7,350,000
Ste	downMethod	$8,500,000	$7,500,000
ReciprocalMethod	$9,000,000	$7,000,000

Managementofthecompanyhasdecidedthatitwillachievethemostappropriatejobcostsbyusingindividualmanufacturingdepartmentoverheadratestoallocatetheoverheadcoststothejobs.These ratesare developed after support-department costs are allocatedtomanufacturingdepartments. Thecompanyusesnormal costing.Machiningdepartment'scostisallocated onthebasisofmachine-hoursandAssemblydepartment'scostisallocated basedonlabourhours.Thebudgetedlabourhourandmachinehoursforthetwomanufacturingdepartmentsarepresentedbelow.

ManufacturingDepartments	MachineHours	LabourHours
MachiningDepartment	200,000	15,000
AssemblyDepartment	80,000	35,000

Required:

(a) Basedonthefollowinginformation,determinethetotalcostsforJobMT27ifthecompanyuses Reciprocal Method to allocatesupport departments' costs to themanufacturingdepartments.

Jobno.MT27	Machining	Assembly
Directmaterials	$36,000	$6,710
Directlabourcost	$1,550	$1,650
Directlabourhours	45	70
MachineHours	210	20

(b)Thecompanyevaluatestheperformanceoftheoperatingdepartmentmanagersonthebasisofhowwelltheymanagedtheirtotalcosts,includingallocatedcosts.Asthe

managerof theMachiningDepartment,whichallocationmethodwould youprefer toallocatesupportdepartment'scoststomanufacturingdepartments?