Answer the following questions using the information below:
Mark,owner of Waugh Fiberglass Fabricators is interested in using the reciprocal allocation method.The following data from operations were collected for analysis:
$$\begin{array}{l}
\text { Buigeted manuficturing overhead costs: }\
\begin{array} { l l l }
\text { Flant Maintenance } & \text { PM (Support Dept) } & \$ 350000 \
\text { Data Frocessing } & \text { DP (Support Dept) } & \$ 75000 \
\text { Machining } & \text { M (Operating Dept) } & \$ 225000 \
\text { Capping } & \text { C (Operating Dept) } & \$ 125000
\end{array}
\end{array}$$ Services furnished:
By Plant Maintenance (budgeted labour-hours):
$\begin{array} { l l } \text { to Data Processing } & 3500 \ \text { to Machining } & 5000 \ \text { to Capping } & 8200 \end{array}$

By Data Frocessing (bud geted computer time):

$\begin{array}{ll}
\text { to Flant Maintenance } & 600 \
\text { to Machining } & 3500 \
\text { to Capping } & 600
\end{array}$
-What is the complete reciprocated cost of the Plant Maintenance Department?

Question

Answer the following questions using the information below:
Mark,owner of Waugh Fiberglass Fabricators is interested in using the reciprocal allocation method.The following data from operations were collected for analysis:
 $$\begin{array}{l}
\text { Buigeted manuficturing overhead costs: }\
\begin{array} { l l l } 
\text { Flant Maintenance } & \text { PM (Support Dept) } & \$ 350000 \
\text { Data Frocessing } & \text { DP (Support Dept) } & \$ 75000 \
\text { Machining } & \text { M (Operating Dept) } & \$ 225000 \
\text { Capping } & \text { C (Operating Dept) } & \$ 125000
\end{array}
\end{array}$$ Services furnished:
By Plant Maintenance (budgeted labour-hours):
 $\begin{array} { l l } \text { to Data Processing } & 3500 \ \text { to Machining } & 5000 \ \text { to Capping } & 8200 \end{array}$

By Data Frocessing (bud geted computer time):

$\begin{array}{ll}
\text { to Flant Maintenance } & 600 \
\text { to Machining } & 3500 \
\text { to Capping } & 600
\end{array}$
-What is the complete reciprocated cost of the Plant Maintenance Department?

Quizplus · Accepted Answer

The reciprocal allocation method was used to allocate costs from the Plant Maintenance Department to other departments (Finishing and Assembly). The total cost of Plant Maintenance after reciprocal allocation was $369,459. The other choices are either the budgeted cost of the Plant Maintenance Department ($365,000) or the total cost of all three departments before reciprocal allocation ($375,773 and $393,750), which are not the complete reciprocated cost of Plant Maintenance. Therefore, the best choice is B.

Answer the Following Questions Using the Information Below: Mark,owner of Waugh

Answer the Following Questions Using the Information Below:
Mark,owner of Waugh