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Question 2 Justin Veeby, owner of COVID international Fabricators, Inc. , is interested in using the reciprocal allocation method. The following data from operations were
Question 2 Justin Veeby, owner of COVID international 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) $350,000 Data Processing DP (Support Dept) $ 75,000 Machining M (Operating Dept) $225 ,000 Capping C (Operating Dept) $125 ,000 Services trnished: By Plant Maintenance (budgeted labor-hours): to Data Processing 3,500 to Machining 5,000 to Capping 8 ,200 By Data Processing (budgeted computer time): to Plant Maintenance 600 to Machining 3 ,500 to Capping 600 Required: a. What is the complete reciprocated cost of the Plant Maintenance Department? (4 marks) b. What is the complete reciprocated cost of the Data Processing Department? (4 marks) c. (True or False? Explain) (2 marks) The direct allocation method incorporates mutual services provided among all support departments
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