Question

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)

$320,000

Data Processing

DP (Support Dept)

$100,000

Machining

M (Operating Dept)

$245,000

Capping

C (Operating Dept)

$140,000

Services furnished:
By Plant Maintenance (budgeted labor-hours):

to Data Processing

3600

to Machining

5000

to Capping

8800

By Data Processing (budgeted computer time):

to Plant Maintenance

750

to Machining

3700

to Capping

800

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

Answers:

	$120,690
		$149,210
		$220,000
		$171,269

Answer 1