The Managers at Elliot Manufacturing Are Discussing Ways to Allocate

Multiple Choice

The managers at Elliot Manufacturing are discussing ways to allocate the cost of support departments such as Quality Control and Maintenance to the operating departments. To aid them in this discussion, the controller has provided the following information: If Elliot Manufacturing uses the reciprocal method of allocating support costs, the total amount of quality control costs (rounded to the nearest dollar) to be allocated to the other departments would be:

A) $284,211
B) $336,842
C) $350,000
D) $421,053