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

question 14

Multiple Choice

Answer the following questions using the information below:
Hugo, owner of Automated Fabric, Inc., is interested in using the reciprocal allocation method. The following data from operations were collected for analysis:
$\text { Budgeted manufacturing overhead costs: }$
$\begin{array}{llr}\text { Maintenance } & \text { M (Support Dept) } & \$ 300,000 \\\text { Personnel } & \mathrm{P} \text { (Support Dept) } & \$ 160,000 \\\text { Weaving } & \text { W (Weaving Dept) } & \$ 650,000 \\\text { Colorizing } & \mathrm{C} \text { (Colorizing Dept) } & \$ 350,000\end{array}$

$\begin{array}{ll}\text { Services fumished: }\\\text { By Maintenance (bud geted labor-hours) : }\\\text { to Personnel } & 1,000 \\\text { to Weaving } & 7,000 \\\text { to Colorizing } & 4,000\\\text { By Personnel (Number of employees serviced) : }\\\text { Plant Maintenance } & 10 \\\text { Weaving } & 30 \\\text { Colorizing } & 20\end{array}$
-What is the complete reciprocated cost of the Maintenance Department?

• A) $331,267
• B) $326,667
• C) $300,000
• D) $0

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