Use the Information Below to Answer the Following Question(s)

question 131

Multiple Choice

Use the information below to answer the following question(s) .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:
Service furnished:
By Plant Maintenance (budgeted labour hours)
By Data Processing (budgeted computer time)

-What is the complete reciprocated cost of the Data Processing and the Plant Maintenance, respectively?

• A)$90,000 and $393,750
• B)$118,750 and $365,000
• C)$122,971 and $375,773
• D)$152,432 and $375,773
• E)$152,432 and $369,459

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Definitions:

Fixed Ordering Costs

Fixed ordering costs are consistent expenses incurred in the process of ordering inventory or supplies, regardless of the order size.

Material Cost

The expense incurred to purchase or produce the raw materials used in manufacturing a product.

Cash Management

The strategy of collecting, managing, and investing cash in a way that maximizes the availability of cash and minimizes the cost of using external funds.

Non-earning Asset

A non-earning asset is an asset that does not produce income or interest for its owner.