Use the information below to answer the following question(s).The owner of Hi-Tech Fiberglass Fabricators Inc.is interested in using the reciprocal allocation method.The following data from operations were collected for analysis.Budgeted manufacturing overhead costs:
Service furnished:
By Plant Maintenance (budgeted labour hours)
By Data Processing (budgeted computer time)

-What is the Machining Department's allocation of both service departments respectively if their complete reciprocated cost were $375,000 for Plant Maintenance and $100,000 for Data Processing?
A)$112,275 and $74,468
B)$131,250 and $84,375
C)$281,250 and $12,500
D)$337,500 and $200,000
E)$337,500 and $12,500

Question

Use the information below to answer the following question(s).The owner of Hi-Tech Fiberglass Fabricators Inc.is interested in using the reciprocal allocation method.The following data from operations were collected for analysis.Budgeted manufacturing overhead costs:
  Service furnished:
By Plant Maintenance (budgeted labour hours)
  By Data Processing (budgeted computer time)
 
-What is the Machining Department's allocation of both service departments respectively if their complete reciprocated cost were $375,000 for Plant Maintenance and $100,000 for Data Processing?
A)$112,275 and $74,468 
B)$131,250 and $84,375 
C)$281,250 and $12,500 
D)$337,500 and $200,000 
E)$337,500 and $12,500

Quizplus · Accepted Answer

The correct answer is A because the Machining Department's allocation of Plant Maintenance is $112,275 and the allocation of Data Processing is $74,468.

Use the Information Below to Answer the Following Question(s)