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Hugo, owner of Automated Fabric, Inc., is interested in using the reciprocal allocation method. The following data from operations were collected for analysis: Budgeted manufacturing

Hugo, owner of Automated Fabric, Inc., is interested in using the reciprocal allocation method. The following data from operations were collected for analysis: Budgeted manufacturing overhead costs Maintenance M (Support Dept) $330,000 Personnel Weaving P (Support Dept) $150,000 W (Weaving Dept) $630,000 Colorizing C (Colorizing Dept) $390,000 Services furnished By Maintenance (budgeted labor-hours): to Personnel to Weaving to Colorizing A. P (1,900/13,700) M B. P= $150,000 C. P $330,000 - $150,000 (1,900/13,700) M D. P $150,000+ (1,900/13,700) M www 1,900 7,800 4,000

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