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QUESTION 15 Alfred, owner of Hi-Tech Fiberglass Fabricators, Inc., is interested in using the reciprocal allocation method. The following data from operations were collected for
QUESTION 15 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 PM (Support Dept) Data Processing DP (Support Dept) Machining M (Operating Dept) Capping C(Operating Dept) $390,000 $50,000 $240,000 $145,000 Services furnished: 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 4000 5100 8000 900 4150 700 Which of the following linear equations represents the complete reciprocated cost of the Data Processing Department? DP= $50,000 * (900 / 5750) + $390,000 * (4000 / 17,100) DP= $390,000 + (900 / 17,100) DP DP= $50,000 + (4000/ 17,100) PM DP= $50,000 + (900 / 5750) PM
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