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Author Question: Hugo, owner of Automated Fabric, Inc., is interested in using the reciprocal allocation method. The ... (Read 306 times)

audragclark

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Hugo, owner of Automated Fabric, Inc., is interested in using the reciprocal allocation method. The following data from operations were collected for analysis:

Budgeted manufacturing overhead costs:
MaintenanceM (Support Dept)$400,000
PersonnelP (Support Dept)$150,000
WeavingW (Weaving Dept)$620,000
ColorizingC (Colorizing Dept)$360,000

Services furnished:
By Maintenance (budgeted labor-hours):
to Personnel1000
to Weaving8000
to Colorizing4100
By Personnel (Number of employees serviced):
Plant Maintenance12
Weaving36
Colorizing23

Which of the following linear equations represents the complete reciprocated cost of the Personnel Department?
◦ P = $400,000 - $150,000 (1000 / 13,100) M
◦ P = (1000 / 13,100) M
◦ P = $150,000 + (1000 / 13,100) M
◦ P = $150,000


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Marked as best answer by audragclark on Mar 6, 2021

deja

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audragclark

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Reply 2 on: Mar 6, 2021
Excellent


momolu

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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