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 Which of the following linear equations represents the complete reciprocated cost of the Personnel Department? A. P = $200,000 B. P = (1,100/13,700) M C. P= $200,000+ (1,100/ 13,700) M D. P= $330,000 $200,000 (1,100/13,700) M $330,000 $200,000 $660,000 $440,000 1,100 7,600 5,000 9 39 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 Which of the following linear equations represents the complete reciprocated cost of the Personnel Department? A. P = $200,000 B. P = (1,100/13,700) M C. P= $200,000+ (1,100/ 13,700) M D. P= $330,000 $200,000 (1,100/13,700) M $330,000 $200,000 $660,000 $440,000 1,100 7,600 5,000 9 39 25
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

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
Which of the following linear equations represents the complete reciprocated cost of the Personnel Department?
A. P= $200,000
B. P = (1,100/ 13,700) M
C. P= $200,000+ (1,100/ 13,700) M
D. P= $330,000 $200,000 (1,100/ 13,700) M
***
$330,000
$200,000
$660,000
$440,000
1,100
7,600
5,000
9
39
25
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