The Accountants for Elliot, Inc

question 108

Multiple Choice

The accountants for Elliot, Inc. are preparing the operating departments overhead budgets. The Maintenance department direct costs are $12,000, and the Administration department direct costs are $54,000. The following data have been collected about use of services: Use the reciprocal method. The cost of Administration department after support cost allocations but before allocation to the operating departments is:

• A) $58,800
• B) $60,800
• C) $60,000
• D) $59,368

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