The accountants for Elliot, Inc. are preparing the operating departments overhead budgets. The Maintenance department direct costs are $12,000, and the Administration department direct costs are $54,000. The following data have been collected about use of services: (based on number of employees)
Using the reciprocal method, the total costs allocated to the three operating departments from the support departments is:
A) $66,000
B) $84,000
C) $59,368
D) $60,000

Question

The accountants for Elliot, Inc. are preparing the operating departments overhead budgets. The Maintenance department direct costs are $12,000, and the Administration department direct costs are $54,000. The following data have been collected about use of services:  (based on number of employees)
Using the reciprocal method, the total costs allocated to the three operating departments from the support departments is:
A) $66,000 
B) $84,000 
C) $59,368 
D) $60,000

Quizplus · Accepted Answer

The Answer of The accountants for Elliot, Inc. are preparing the operating departments overhead budgets. The Maintenance department direct costs are $12,000, and the Administration department direct costs are $54,000. The following data have been collected about use of services:  (based on number of employees)
Using the reciprocal method, the total costs allocated to the three operating departments from the support departments is:
A) $66,000 
B) $84,000 
C) $59,368 
D) $60,000

The Accountants for Elliot, Inc