Question

​Alfred, owner of Himinus−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)	$330,000
Data Processing DP​ (Support Dept)	$65,000
Machining M​ (Operating Dept)	$250,000
Capping C​ (Operating Dept) $120,000

Services furnished​:
By Plant Maintenance​ (budgeted labor−​hours):
to Data Processing	3,800
to Machining	6,000
to Capping	8,800
By Data Processing​ (budgeted computer​ time):
to Plant Maintenance	700
to Machining	4,050
to Capping	750

What is the complete reciprocated cost of the Data Processing​ Department? (Do not round any intermediary​ calculations.)

A.$265,000
B.$109,212
C.$78,280
D. $135,954

Answer 1