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K Alfred, owner of Hi-Tech Fiberglass Fabricators, Inc., is interested in using the reciprocal allocation method. The following data from operations were collected for
K 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 Budgeted manufacturing overhead costs: Plant Maintenance Data Processing Machining Capping Services furnished PM (Support Dept) DP (Support Dept) M (Operating Dept) C (Operating Dept) 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 $400,000 $50,000 $240,000 $150,000 3,800 6,000 8,000 1,050 3,850 950 Which of the following linear equations represents the complete reciprocated cost of the Data Processing Department? OA. DP= $50,000 x (1,050/5,850) $400,000 x (3,800/17,800) B. DP $50,000+ (1.050/5,850) PM O C. DP $400,000 (1.050/17,800) DP D. DP $50,000+ (3.800/ 17,800) PM
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