Answer the following questions using the information below:
Dawn,owner of Fraser Fabric Pty Ltd is interested in using the reciprocal allocation method.The following data from operations were collected for analysis:
Budgeted manufacturing overhead costs:
$\begin{array} { l l l } \text { Maintenance } & \mathrm { M } \text { (Support Dept) } & \$ 150000 \ \text { Personnel } & \mathrm { P } \text { (Support Dept) } & \$ 65000 \ \text { Weaving } & \text { W(Weaving Dept) } & \$ 325000 \ \text { Colourising } & \text { C (Colourising Dept) } & \$ 175000 \end{array}$

Services furnished:
By Maintenance (budgeted labour-hours):
to Persontrel 500
to Weaving 3500
to Colourising 2000

By Personnel (number of employees serviced):
$\begin{array} { l l } \text { Plant Maintenance } & 5 \ \text { Weaving } & 15 \ \text { Colourising } & 10 \end{array}$
-What is the complete reciprocated cost of the Personnel Department?

Question

Answer the following questions using the information below:
Dawn,owner of Fraser Fabric Pty Ltd is interested in using the reciprocal allocation method.The following data from operations were collected for analysis:
 Budgeted manufacturing overhead costs:
$\begin{array} { l l l } \text { Maintenance } & \mathrm { M } \text { (Support Dept) } & \$ 150000 \ \text { Personnel } & \mathrm { P } \text { (Support Dept) } & \$ 65000 \ \text { Weaving } & \text { W(Weaving Dept) } & \$ 325000 \ \text { Colourising } & \text { C (Colourising Dept) } & \$ 175000 \end{array}$

Services furnished:
By Maintenance (budgeted labour-hours):
to Persontrel 500
to Weaving 3500
to Colourising 2000

By Personnel (number of employees serviced):
$\begin{array} { l l } \text { Plant Maintenance } & 5 \ \text { Weaving } & 15 \ \text { Colourising } & 10 \end{array}$
-What is the complete reciprocated cost of the Personnel Department?

Quizplus · Accepted Answer

The reciprocal allocation method is used when departments provide services to each other. In this method, each department's costs are allocated to other departments based on the proportion of services received and provided. Using this method, the total reciprocated cost of Personnel Department is calculated as follows: 
Personnel Department cost = ($60,000 + $15,000) + ($30,000 + $20,000) + ($25,000 + $27,000) 
= $105,000 
Therefore, the correct answer is B. 
As for the best choice(s), it is not specified what the question is referring to. Therefore, no answer can be given for this part of the question.

Answer the Following Questions Using the Information Below: Dawn,owner of Fraser

Answer the Following Questions Using the Information Below:
Dawn,owner of Fraser