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The Reeve Ltd Manufacturing Company Ltd has two production departments (Assembly and Finishing) and two support departments (Repairs and Engineering). The usage of the two

The Reeve Ltd Manufacturing Company Ltd has two production departments (Assembly and Finishing) and two support departments (Repairs and Engineering). The usage of the two support departments in 20X2 is as follows:

Service provided by: Service provided to:
Repairs Engineering Assembly Finishing
Repairs - 10% 60% 30%
Engineering 20% - 40% 40%

The budgeted costs in the support departments of 20X2 were as follows:

Repairs $90,000

Engineering $50,000

Using the reciprocal method, what is the amount of Repairs Department cost allocated to the Assembly Department?

A.

$61,224

B.

$61,977

C.

$102,041

D.

$59,296

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