Answer the Following Questions Using the Information Below:
Alfred, Owner $\text { Budgeted manufacturing overhead costs }$

question 5

Multiple Choice

Answer the following questions using the information below:
Alfred, owner of Hi-Tech Fiberglass Fabricators, Inc., is interested in using the reciprocal allocation method. The following data from operations were collected for analysis:
$\text { Budgeted manufacturing overhead costs }$
$\begin{array}{lll}\text { Flant Maintenance } & \text { PM (Support Dept) } & \$ 350,000 \\\text { Data Processing } & \text { DP (Support Dept) } & \$ 75,000 \\\text { Machining } & \text { M (Operating Dept) } & \$ 225,000 \\\text { Capping } & \text { C (Operating Dept) } & \$ 125,000\end{array}$

$\text { Services furmished: }$
$\begin{array}{ll}\text { By Plant Maintenance (bud geted labor-hours) : }\\\text { to Data Processing } & 3,500 \\\text { to Machining } & 5,000 \\\text { to Capping } & 8,200\\\text { By Data Processing (bud geted computer time) : }\\\text { to Plant Maintenance } & 600 \\\text { to Machining } & 3,500 \\\text { to Capping } & 600\end{array}$
-What is the complete reciprocated cost of the Plant Maintenance Department?

• A) $393,750
• B) $369,459
• C) $365,000
• D) $375,773

---

Definitions:

Advanced Level

Refers to a stage or qualification that is considered to be more complex and challenging than basic or intermediate levels.

Standard Level

The expected or planned level of activity, output, or performance against which actual outcomes can be compared.

Selling Price

Selling price is the amount a customer pays to purchase a product or service, often strategically set by considering production costs, market demand, and competitor pricing.

Process Further

A decision-making process in cost accounting that evaluates the costs and benefits of additional processing.