Alfred, owner of HiTech Fiberglass Fabricators, Inc., is interested in using the reciprocal allocation method....
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Accounting
Alfred, owner of HiTech 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) $380,000
Data Processing DP (Support Dept) $60,000
Machining M (Operating Dept) $210,000
Capping C (Operating Dept) $150,000
Services furnished:
By Plant Maintenance (budgeted laborhours):
to Data Processing 3,600
to Machining 5,400
to Capping 8,000
By Data Processing (budgeted computer time):
to Plant Maintenance 800
to Machining 4,200
to Capping 600
What is the complete reciprocated cost of the Plant Maintenance Department? (Do not round any intermediary calculations.)
A) $400,693
B) $440,000
C) $404,957
D) $411,143
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