Molten Works Ltd Provides the Following Information About Departmental Consumption

question 66

Multiple Choice

Molten Works Ltd provides the following information about departmental consumption of allocation bases for its 3 support and 2 operating departments. $$\begin{array} { | l | l | c | c | c | c | } \hline & { \text { Sugport Departments } } &&& { \text { Operating Departments } } \\\hline & \text { Personnel } & \text { Cafeteria } & \text { Maintenarice } & \text { Machining } & \text { Assembly } \\\hline \text { Personnel } & & 10 \% & 20 \% & 30 \% & 40 \% \\\hline \text { Cafeteria } & 5 \% & & 5 \% & 40 \% & 50 \% \\\hline \text { Maintenarice } & 10 \% & 20 \% & & 50 \% & 20 \% \\\hline\end{array}$$ For the reciprocal method, what proportion of the Cafeteria Department's costs will be allocated to the Machining Department?

• A) 44.4%
• B) 5%
• C) 20%
• D) 40%

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Definitions:

Days' Sales

A financial metric that measures the average number of days it takes a company to convert its inventory into sales.