Alfred, Owner of Hi-Tech Fiberglass Fabricators, Inc

Multiple Choice

Alfred, owner of Hi-Tech Fiberglass Fabricators, Inc., is interested in using the reciprocal allocation method. The following data from operations were collected for analysis:

Which of the following linear equations represents the complete reciprocated cost of the Data Processing Department?

A) DP= $70,000 + (700 / 4850) PM
B) DP= $70,000 + (3900/ 17,100) PM
C) DP= $70,000 × (700 / 4850) + $370,000 × (3900 / 17,100)
D) DP= $370,000 + (700 / 17,100) DP