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 Data Processing Machining Capping OA. $385,000 OB. $325,877 PM (Support Dept) DP (Support Dept) M (Operating Dept) C (Operating Dept) OC. $337,044 OD. $331,738 $300,000 $85,000 Services furnished By Plant Maintenance (budgeted labor-hours) to Data Processing to Machining to Capping By Data Processing (budgeted computer time): to Plant Maintenance. to Machining to Capping What is the complete reciprocated cost of the Plant Maintenance Department? (Do not round any intermediary calculations.) $220,000 $125,000 4,000 5,500 4,000 900 3,700 950

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Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.