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 Weaving Colorizing $340,000 $120,000 $670,000 $380,000 1,700 8,000 4,500 12 40 25
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 Weaving Colorizing $340,000 $120,000 $670,000 $380,000 1,700 8,000 4,500 12 40 25
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
Weaving
Colorizing
What is the complete reciprocated cost of the Personnel Department? (Do not round any intermediary calculations.)
O A. $163,750
O B. $120,000
O C. $176,944
O D. $220,000
(...)
$340,000
$120,000
$670,000
$380,000
1,700
8,000
4,500
12
40
25
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