Use the Information Below to Answer the Following Question(s)

Multiple Choice

Use the information below to answer the following question(s) .The owner of Hi-Tech Fiberglass Fabricators Inc.is interested in using the reciprocal allocation method.The following data from operations were collected for analysis.Budgeted manufacturing overhead costs:
Service furnished:
By Plant Maintenance (budgeted labour hours)
By Data Processing (budgeted computer time)

-Which of the following linear equations would represent the complete reciprocated cost of the Data Processing department?

A) DP = $75,000 + (600/4,700) PM
B) DP = $75,000 + (3,500/16,700) PM
C) DP = $75,000 × (600/4,800) + $350,000 × (3,340/16,700)
D) PM = $350,000 + (600/16,700) DP
E) PM = $75,000 × (600/4,700) + $350,000 × (3,340/16,700)