Mannerman Products, Incorporated, operates an electric power plant which provides all electrical power for the company's Machining and Fabrication departments. Information on kilowatt- hours (kwh) of power usage in these departments for May follow: Machining Fabrication Total 20,000 10,000 30,000 Budgeted kwh Actual kwh ● The costs of the electric power plant are all fixed. Budgeted fixed costs for May totaled $60,000 and are determined by peak- period requirements. Actual fixed costs for the month totaled $65,000. The Machining Department requires 60% of the peak- period capacity and the Fabrication Department requires 40%. 25,000 How much (if any) of the electric power plant's actual fixed costs of $65,000 should not be charged to the other departments? Multiple Choice ● $0 ● • $10,000 ● 15,000 40,000 $5,000 $15,000
Mannerman Products, Incorporated, operates an electric power plant which provides all electrical power for the company's Machining and Fabrication departments. Information on kilowatt- hours (kwh) of power usage in these departments for May follow: Machining Fabrication Total 20,000 10,000 30,000 Budgeted kwh Actual kwh ● The costs of the electric power plant are all fixed. Budgeted fixed costs for May totaled $60,000 and are determined by peak- period requirements. Actual fixed costs for the month totaled $65,000. The Machining Department requires 60% of the peak- period capacity and the Fabrication Department requires 40%. 25,000 How much (if any) of the electric power plant's actual fixed costs of $65,000 should not be charged to the other departments? Multiple Choice ● $0 ● • $10,000 ● 15,000 40,000 $5,000 $15,000
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Mannerman Products, Incorporated,
operates an electric power plant which
provides all electrical power for the
company's Machining and Fabrication
departments. Information on kilowatt-
hours (kwh) of power usage in these
departments for May follow:
Machining Fabrication Total
20,000
10,000 30,000
Budgeted
kwh
Actual
kwh
The costs of the electric power plant are all
fixed. Budgeted fixed costs for May totaled
$60,000 and are determined by peak-
period requirements. Actual fixed costs for
the month totaled $65,000. The Machining
Department requires 60% of the peak-
period capacity and the Fabrication
Department requires 40%.
●
• $0
How much (if any) of the electric power
plant's actual fixed costs of $65,000 should
not be charged to the other departments?
Multiple Choice
●
25,000 15,000
●
●
40,000
$10,000
$5,000
$15,000
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