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) Data Processing DP (Support Dept) $350,000 M (Operating Dept) C (Operating Dept) $ 75,000 $225,000 $125,000 Services furnished. Machining Capping By Plant Maintenance (budgeted labor-hours): to Data Processing to Machining to Capping 3,500 labor-hours 5,000 labor-hours 8,200 labor-hours By Data Processing (budgeted computer hours): to Plant Maintenance to Machining to Capping 600 computer hours 3,500 computer hours 600 computer hours What is the true cost (complete reciprocated cost) of the Plant Maintenance Department? Example of Answer: 4000 (No comma, space, decimal point, or $ sign) A/
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) Data Processing DP (Support Dept) $350,000 M (Operating Dept) C (Operating Dept) $ 75,000 $225,000 $125,000 Services furnished. Machining Capping By Plant Maintenance (budgeted labor-hours): to Data Processing to Machining to Capping 3,500 labor-hours 5,000 labor-hours 8,200 labor-hours By Data Processing (budgeted computer hours): to Plant Maintenance to Machining to Capping 600 computer hours 3,500 computer hours 600 computer hours What is the true cost (complete reciprocated cost) of the Plant Maintenance Department? Example of Answer: 4000 (No comma, space, decimal point, or $ sign) A/
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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)
Data Processing DP (Support Dept)
$350,000
M (Operating Dept)
C (Operating Dept)
$ 75,000
$225,000
$125,000
Services furnished.
Machining
Capping
By Plant Maintenance (budgeted labor-hours):
to Data Processing
to Machining
to Capping
3,500 labor-hours
5,000 labor-hours
8,200 labor-hours
By Data Processing (budgeted computer hours):
to Plant Maintenance
to Machining
to Capping
600 computer hours
3,500 computer hours
600 computer hours
What is the true cost (complete reciprocated cost) of the Plant Maintenance
Department?
Example of Answer: 4000 (No comma, space, decimal point, or $ sign)
A/
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