Joanne, owner of Automated Fabric Inc., is interested in using the reciprocal method for allocating service department costs. The following data from operations have been collected for analysis. Budgeted manufacturing overhead costs: Maintenance (Support Dept) $150,000 Personnel (Support Dept) $ 80,000 Weaving (Operating Dept) $325,000 Colourising (Operating Dept) $175,000 Services provided: By Maintenance (budgeted labour-hours): to Personnel 500 to Weaving 3,500 to Colorizing 2,000 By Personnel (Number of employees): Plant Maintenance 5 Weaving 15 Colorizing 10 Required: Using the reciprocal method calculate: a) the total cost in the Maintenance department b) the total cost in the Personnel department Please dont give solutions image format thank you
Joanne, owner of Automated Fabric Inc., is interested in using the reciprocal method for allocating service department costs. The following data from operations have been collected for analysis.
Budgeted manufacturing overhead costs:
Maintenance (Support Dept) $150,000
Personnel (Support Dept) $ 80,000
Weaving (Operating Dept) $325,000
Colourising (Operating Dept) $175,000
Services provided:
By Maintenance (budgeted labour-hours):
to Personnel 500
to Weaving 3,500
to Colorizing 2,000
By Personnel (Number of employees):
Plant Maintenance 5
Weaving 15
Colorizing 10
Required:
Using the reciprocal method calculate:
a) the total cost in the Maintenance department
b) the total cost in the Personnel department
Please dont give solutions image format thank you
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