Use the following information for the next 6 questions.
The accountant for Milton, Inc. is preparing the budgets for operating department support service costs. Maintenance costs are allocated based on square feet, and cafeteria costs are allocated based on number of employees. The following data have been collected:
-If the reciprocal method is used, the total amount that will be allocated for maintenance is
A) $52,022
B) $55,952
C) $50,211
D) $57,034

Question

Use the following information for the next 6 questions.
The accountant for Milton, Inc. is preparing the budgets for operating department support service costs. Maintenance costs are allocated based on square feet, and cafeteria costs are allocated based on number of employees. The following data have been collected: 
-If the reciprocal method is used, the total amount that will be allocated for maintenance is
A) $52,022 
B) $55,952 
C) $50,211 
D) $57,034

Quizplus · Accepted Answer

The reciprocal method considers the mutual services provided among departments. Based on the given options, $52,022 is the correct total amount allocated for maintenance using this method.

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