Alfred, owner of Hi-Tech Fiberglass Fabricators, Inc., is interested in using the reciprocal allocation method. The following data from operations were collected fo Budgeted manufacturing overhead costs: Plant Maintenance Data Processing Machining Capping PM (Support Dept) DP (Support Dept) M (Operating Dept) C (Operating Dept) $320,000 $60,000 $200,000 $135,000 Services furnished: By Plant Maintenance (budgeted labor-hours): to Data Processing to Machining to Capping By Data Processing (budgeted computer time): to Plant Maintenance to Machining to Capping Which of the following linear equations represents the complete reciprocated cost of the Data Processing Department? O A. DP= $60,000 x (900/6,050) + $320,000x (3,600 / 18,000) B. DP= $320,000 + (900/18,000) DP OC. DP= $60,000+ (3,600/ 18,000) PM 3,600 6,000 8,400 900 4,200 950

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Dog

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
Data Processing
Machining
PM (Support Dept)
DP (Support Dept)
M (Operating Dept)
Capping
C (Operating Dept)
$320,000
$60,000
$200,000
$135,000
Services furnished:
By Plant Maintenance (budgeted labor-hours):
to Data Processing
to Machining
to Capping
By Data Processing (budgeted computer time):
to Plant Maintenance
to Machining
to Capping
Which of the following linear equations represents the complete reciprocated cost of the Data Processing Department?
O A. DP= $60,000 x (900/6,050) + $320,000x (3,600/18,000)
OB. DP= $320,000+ (900/18,000) DP
OC. DP= $60,000+ (3,600/ 18,000) PM
O D. DP= $60,000+ (900 / 6,050) PM
3,600
6,000
8,400
900
4,200
950
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 Data Processing Machining PM (Support Dept) DP (Support Dept) M (Operating Dept) Capping C (Operating Dept) $320,000 $60,000 $200,000 $135,000 Services furnished: By Plant Maintenance (budgeted labor-hours): to Data Processing to Machining to Capping By Data Processing (budgeted computer time): to Plant Maintenance to Machining to Capping Which of the following linear equations represents the complete reciprocated cost of the Data Processing Department? O A. DP= $60,000 x (900/6,050) + $320,000x (3,600/18,000) OB. DP= $320,000+ (900/18,000) DP OC. DP= $60,000+ (3,600/ 18,000) PM O D. DP= $60,000+ (900 / 6,050) PM 3,600 6,000 8,400 900 4,200 950
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Cost allocation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education