Question: Swanton Inc. is interested in using the reciprocal allocation method. The following data from operations were collected for analysis: Budgeted manufacturing overhead costs: Plant

Swanton Inc. is interested in using the reciprocal allocation method. The following

Swanton 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) $350,000 Data Processing DP (Support Dept) $95,000 Machining M (Operating Dept) $230,000 Capping C (Operating Dept) $110,000 Services furnished: By Plant Maintenance (budgeted labor-hours): to Data Processing 3200 to Machining 5700 9000 to Capping By Data Processing (budgeted computer time): to Plant Maintenance to Machining to Capping 900 4200 700 Which of the following linear equations represents the complete reciprocated cost of the Data Processing Department? ODP = $95,000 (900 / 5800) + $350,000 (3200 / 17,900) DP = $95,000 + (900 / 5800) PM DP = $350,000+ (900/ 17,900) DP DP = $95,000 + (3200/ 17,900) PM

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