Hugo, owner of Automated Fabric, Inc., is interested in using the reciprocal allocation method. The following data from operations were collected for analysis: Budgeted manufacturing overhead costs: M (Support Dept) P (Support Dept) W (Weaving Dept) C (Colorizing Dept) Maintenance Personnel Weaving Colorizing Services furnished: By Maintenance (budgeted labor-hours): to Personnel. to Weaving to Colorizing By Personnel (Number of employees serviced): Plant Maintenance 11 30 Weaving Colorizing 25 What is the complete reciprocated cost of the Maintenance Department? (Do not round any intermediary calculations.) OA $368,330 OB. $360,006 OC. SO $330,000 $180,000 $670,000 $410,000 D. $330,000 1,800 7,400 4,100

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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.