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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) $340,000
Personnel P (Support Dept) $140,000
Weaving W (Weaving Dept) $690,000
Colorizing C (Colorizing Dept) $440,000
Services furnished:
By Maintenance (budgeted labor-hours):
to Personnel 1800
to Weaving 7500
to Colorizing 4600
By Personnel (Number of employees serviced):
Plant Maintenance 9
Weaving 40
Colorizing 29
What is the complete reciprocated cost of the Maintenance Department? (Do not round any intermediary calculations.)
A) $361,556
B) $356,154
C) $340,000
D) $0
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