Question
Problem 1 Hi-Tech Fiberglass Fabrications, Inc., is interested in allocating its support-department costs to its production departments. The following data were collected for analysis:
Problem 1 Hi-Tech Fiberglass Fabrications, Inc., is interested in allocating its support-department costs to its production departments. The following data were collected for analysis: Budgeted manufacturing overhead costs: Plant Maintenance (support department) Data Processing (support department) Machining (production department) Capping (production department) Services provided by support: Plant Maintenance (budgeted labor hours): Data Processing Machining Capping 3,500 5,000 8,200 $350,000 75,000 225,000 125,000 Data Processing (budgeted computer time): Plant Maintenance Machining Capping 600 3,500 600 Required: Showing all work, what are the final total manufacturing overhead costs of Machining and Capping using the (1) direct method, (2) step-down method, (3) reciprocal method? If you do not show all of the calculations, even if you have the correct answers, you do not get all of the points!
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