Answer the Following Questions Using the Information Below:
Mark,owner of Waugh

Multiple Choice

Answer the following questions using the information below:
Mark,owner of Waugh Fiberglass Fabricators is interested in using the reciprocal allocation method.The following data from operations were collected for analysis:
$$\begin{array}{l}\text { Buigeted manuficturing overhead costs: }\\\begin{array} { l l l } \text { Flant Maintenance } & \text { PM (Support Dept) } & \$ 350000 \\\text { Data Frocessing } & \text { DP (Support Dept) } & \$ 75000 \\\text { Machining } & \text { M (Operating Dept) } & \$ 225000 \\\text { Capping } & \text { C (Operating Dept) } & \$ 125000\end{array}\end{array}$$ Services furnished:
By Plant Maintenance (budgeted labour-hours) :
$\begin{array} { l l } \text { to Data Processing } & 3500 \\ \text { to Machining } & 5000 \\ \text { to Capping } & 8200 \end{array}$

By Data Frocessing (bud geted computer time) :

$\begin{array}{ll}\text { to Flant Maintenance } & 600 \\\text { to Machining } & 3500 \\\text { to Capping } & 600\end{array}$
-Which of the following linear equations represents the complete reciprocated cost of the Data Processing Department?

A) DP = $350 000 + (600/16 700) DP
B) DP = $75 000 + (600/4700) PM
C) DP = $75 000 + (3500/16 700) PM
D) DP = $75 000 × (600/4700) + $350 000 × (3340/16 700)