Answer the Following Questions Using the Information Below:
Dawn,owner of Fraser

question 78

Multiple Choice

Answer the following questions using the information below:
Dawn,owner of Fraser Fabric Pty Ltd is interested in using the reciprocal allocation method.The following data from operations were collected for analysis:
Budgeted manufacturing overhead costs:
$\begin{array} { l l l } \text { Maintenance } & \mathrm { M } \text { (Support Dept) } & \$ 150000 \\ \text { Personnel } & \mathrm { P } \text { (Support Dept) } & \$ 65000 \\ \text { Weaving } & \text { W(Weaving Dept) } & \$ 325000 \\ \text { Colourising } & \text { C (Colourising Dept) } & \$ 175000 \end{array}$

Services furnished:
By Maintenance (budgeted labour-hours) :
to Persontrel 500
to Weaving 3500
to Colourising 2000

By Personnel (number of employees serviced) :
$\begin{array} { l l } \text { Plant Maintenance } & 5 \\ \text { Weaving } & 15 \\ \text { Colourising } & 10 \end{array}$
-What is the complete reciprocated cost of the Personnel Department?

• A)$105 000
• B)$78 592
• C)$65 000
• D)$92 500

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Definitions:

Withdrawals Account

An account in bookkeeping where amounts drawn out from the business by the owner for personal use are recorded.

Revenue Account

An account that tracks the income earned by a company from its operational activities, excluding expenses.

Fees Earned Account

An income account that records the revenue earned from services provided or fees charged.

Capital Account

An account on the balance sheet representing the cumulative amount of the company's earnings, investment, or losses.