Question: Use the information below to answer the following two questions. The owner of Hi-Tech Fiberglass Fabricators Inc. is interested in using the reciprocal allocation method.
Use the information below to answer the following two questions. 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: $350,000 $75,000 Plant Maintenance Data Processing Machining Capping PM (Support Dept.) DP (Support Dept.) M (Operating Dept.) C(Operating Dept.) $225,000 $125,000 Service furnished: By Plant Maintenance (budgeted labour hours) Data Processing 3,500 Machining 5,000 Capping 8,200 By Data Processing (budgeted computer time) Plant Maintenance 600 Machining 3,500 Capping 600 Which of the following linear equations would represent the complete reciprocated cost of the Data Processing department? Select one: O a PM - $75,000 X (600/4,700) + $350,000 X (3,340/16,700) O b. PM $350,000+ (600/16,700)OP c. DP - $75,000 x (600/4,800) + $350,000 X (3,340/16,700) d. DPS75,000 + (600/4.700PM o DP - $75,000 + (3,500/16,700)PM
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