Alfred, owner of Hi-Tech Fiberglass Fabricators, Inc., is interested in using the reciprocal allocation method. The following
Question:
Alfred, 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 :
Plant Maintenance PM (Support Dept) $370,000
Data Processing DP (Support Dept) $70,000
Machining M (Operating Dept) $235,000
Capping C (Operating Dept) $110,000
Services furnished :
By Plant Maintenance (budgeted labor-hours):
to Data Processing 3900
to Machining 5100
to Capping 8100
By Data Processing (budgeted computer time):
to Plant Maintenance 700
to Machining 3500
to Capping 650
What is the complete reciprocated cost of the Plant Maintenance Department? (Do not round any intermediary calculations.)