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In: Accounting

Hugo, owner of Automated​ Fabric, Inc., is interested in using the reciprocal allocation method. The following...

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

Budgeted manufacturing overhead

costs​:

     Maintenance M​ (Support Dept)

$380,000

     Personnel P​ (Support Dept)

$180,000

     Weaving W​ (Weaving Dept)

$650,000

     Colorizing C​ (Colorizing Dept)

$360,000
Services

furnished​:
By Maintenance​ (budgeted

labor−​hours):

     to Personnel

1,500

     to Weaving

7,000

     to Colorizing

4,800

By Personnel​ (Number of employees​ serviced):

     Plant Maintenance

15

     Weaving

33

     Colorizing

23

What is the complete reciprocated cost of the Personnel​ Department? (Do not round any intermediary​ calculations.)

A. $270,484

B. $200,000

C. $180,000

D. $228,304

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Expert Solution

ekkarill92 answered 2 years ago
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