Joanne, the owner of Automated Fabric Inc., is interested in using the reciprocal method for allocating service department costs. The following data from operations have been collected for analysis.

Budgeted manufacturing overhead costs:

Maintenance (Support Dept) $150,000
Personnel (Support Dept) $ 80,000
Weaving (Operating Dept) $325,000
Colourising (Operating Dept) $175,000

Services provided:

By Maintenance (budgeted labour-hours):
to Personnel 500
to Weaving 3,500
to Colorizing 2,000

By Personnel (Number of employees):
Plant Maintenance 5
Weaving 15
Colorizing 10

Required:

Using the reciprocal method calculate:
a) the total cost of the Maintenance department
b) the total cost in the Personnel department.

Answer rating: 100% (QA)

a The total cost in th... View the full answer