Use the following information for the next 4 questions. Bronson, Inc. has two support departments, Personnel and Maintenance, whose costs are to be allocated to the operating department's overhead for budgeting and inventory costing purposes. Projected amounts for the next year follow:
-If the reciprocal method is used, the cost function representing the total cost of Personnel will be
A) $46,750 + (0.2 × maintenance cost)
B) $46,750 + (0.4 × maintenance cost)
C) $46,750 + (0.1 × maintenance cost)
D) $46,750 + (0.1 × maintenance cost) + (0.2 × personnel cost)

Question

Use the following information for the next 4 questions. Bronson, Inc. has two support departments, Personnel and Maintenance, whose costs are to be allocated to the operating department's overhead for budgeting and inventory costing purposes. Projected amounts for the next year follow: 
-If the reciprocal method is used, the cost function representing the total cost of Personnel will be
A) $46,750 + (0.2 × maintenance cost) 
B) $46,750 + (0.4 × maintenance cost) 
C) $46,750 + (0.1 × maintenance cost) 
D) $46,750 + (0.1 × maintenance cost) + (0.2 × personnel cost)

Quizplus · Accepted Answer

The Answer of Use the following information for the next 4 questions. Bronson, Inc. has two support departments, Personnel and Maintenance, whose costs are to be allocated to the operating department's overhead for budgeting and inventory costing purposes. Projected amounts for the next year follow: 
-If the reciprocal method is used, the cost function representing the total cost of Personnel will be
A) $46,750 + (0.2 × maintenance cost) 
B) $46,750 + (0.4 × maintenance cost) 
C) $46,750 + (0.1 × maintenance cost) 
D) $46,750 + (0.1 × maintenance cost) + (0.2 × personnel cost)

Use the Following Information for the Next 4 Questions