The following information about Monfort Manufacturing is available:
Using the reciprocal method, the equations required to calculate the costs of the support departments are: (where T= the cost of Training Department; M=the cost of Maintenance Department)
A) T=$300,000 + 0.25*M; M=$200,000+0.30*T
B) T=$300,000 + 0.30*M; M=$200,000+0.25*T
C) T=$200,000 + 0.30*M; M=$300,000+0.25*T
D) T=$200,000 + 0.25*M; M=$300,000+0.30*T

Question

The following information about Monfort Manufacturing is available: 
Using the reciprocal method, the equations required to calculate the costs of the support departments are: (where T= the cost of Training Department; M=the cost of Maintenance Department)
A) T=$300,000 + 0.25*M; M=$200,000+0.30*T 
B) T=$300,000 + 0.30*M; M=$200,000+0.25*T 
C) T=$200,000 + 0.30*M; M=$300,000+0.25*T 
D) T=$200,000 + 0.25*M; M=$300,000+0.30*T

Quizplus · Accepted Answer

The Answer of The following information about Monfort Manufacturing is available: 
Using the reciprocal method, the equations required to calculate the costs of the support departments are: (where T= the cost of Training Department; M=the cost of Maintenance Department)
A) T=$300,000 + 0.25*M; M=$200,000+0.30*T 
B) T=$300,000 + 0.30*M; M=$200,000+0.25*T 
C) T=$200,000 + 0.30*M; M=$300,000+0.25*T 
D) T=$200,000 + 0.25*M; M=$300,000+0.30*T

The Following Information About Monfort Manufacturing Is Available