Answer the Following Questions Using the Information Below:
Mark,owner of Waugh

question 104

Multiple Choice

Answer the following questions using the information below:
Mark,owner of Waugh Fiberglass Fabricators is interested in using the reciprocal allocation method.The following data from operations were collected for analysis:
$$\begin{array}{l}\text { Buigeted manuficturing overhead costs: }\\\begin{array} { l l l } \text { Flant Maintenance } & \text { PM (Support Dept) } & \$ 350000 \\\text { Data Frocessing } & \text { DP (Support Dept) } & \$ 75000 \\\text { Machining } & \text { M (Operating Dept) } & \$ 225000 \\\text { Capping } & \text { C (Operating Dept) } & \$ 125000\end{array}\end{array}$$ Services furnished:
By Plant Maintenance (budgeted labour-hours) :
$\begin{array} { l l } \text { to Data Processing } & 3500 \\ \text { to Machining } & 5000 \\ \text { to Capping } & 8200 \end{array}$

By Data Frocessing (bud geted computer time) :

$\begin{array}{ll}\text { to Flant Maintenance } & 600 \\\text { to Machining } & 3500 \\\text { to Capping } & 600\end{array}$
-What is the complete reciprocated cost of the Plant Maintenance Department?

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

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Definitions:

Unit and Dollars

Refers to the measure of financial and physical quantities in terms of units (number of items) and their monetary value in dollars.

Monthly Net Operating Income

Net operating income calculated on a monthly basis, indicating the profitability of business operations within that month.

Fixed Expenses

Costs that do not change with the level of production or sales, such as rent and salaries, remaining constant over a period.

Monthly Advertising Budget

A planned amount of money dedicated to promoting a company's products or services for a month.