The Accountants for Elliot, Inc

Multiple Choice

The accountants for Elliot, Inc. are preparing the operating departments overhead budgets. The Maintenance department direct costs are $12,000, and the Administration department direct costs are $54,000. The following data have been collected about use of services: Using the reciprocal method, the allocation from the maintenance department to Op1 department is:

A) $6,000
B) $13,600
C) $13,421
D) $12,000