(Appendix 12B)Charlie Company has provided the following data concerning power consumption in the company's two operating departments: The company has a Power Services department which provides electrical power for the operating departments.Fixed costs in Power Services are budgeted at $300, 000 for the year and are incurred in order to support peak-period power requirements.How much of this cost should be charged to Department 1?
A)$120, 000
B)$150, 000
C)$180, 000
D)$0

Question

(Appendix 12B)Charlie Company has provided the following data concerning power consumption in the company's two operating departments:  The company has a Power Services department which provides electrical power for the operating departments.Fixed costs in Power Services are budgeted at $300, 000 for the year and are incurred in order to support peak-period power requirements.How much of this cost should be charged to Department 1?
A)$120, 000 
B)$150, 000 
C)$180, 000 
D)$0

Quizplus · Accepted Answer

The Answer of (Appendix 12B)Charlie Company has provided the following data concerning power consumption in the company's two operating departments:  The company has a Power Services department which provides electrical power for the operating departments.Fixed costs in Power Services are budgeted at $300, 000 for the year and are incurred in order to support peak-period power requirements.How much of this cost should be charged to Department 1?
A)$120, 000 
B)$150, 000 
C)$180, 000 
D)$0

(Appendix 12B)Charlie Company Has Provided the Following Data Concerning Power