Question
Hugo, owner of Automated Fabric, Inc., is interested in using the reciprocal allocation method. The following data from operations were collected for analysis: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:analysis:
| Budgeted manufacturing overhead costs: | ||
| Maintenance M (Support Dept) | $380,000 | |
| Personnel P (Support Dept) | $180,000 | |
| Weaving W (Weaving Dept) | $650,000 | |
| Colorizing C (Colorizing Dept) | $360,000 | |
| Services furnished: | ||
| By Maintenance (budgeted laborhours): | ||
| to Personnel | 1,500 | |
| to Weaving | 7,000 | |
| to Colorizing | 4,800 | |
| By Personnel (Number of employees serviced): | ||
| Plant Maintenance | 15 | |
| Weaving | 33 | |
| Colorizing | 23 |
What is the complete reciprocated cost of the Personnel Department? (Do not round any intermediary calculations.)
A. $270,484
B. $200,000
C. $180,000
D. $228,304
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Advanced Accounting
Authors: Joe Ben Hoyle, Timothy S. Doupnik, Thomas F. Schaefer, Oe Ben Hoyle
9th Edition
007337945X, 978-0073379456
