Required information Alamo Power historically allocates IDC for its safety program to generation facilities in Cities A and B based on the number of employees. Last year, $300,000 was distributed and the employee count was 790 in city A and 450 in city B. Implementation of the ABC method took place this year to allocate IDC on the basis of number of accidents. City A reported 320 events and city B had 142 accidents reported. Determine the allocation based on the number of accidents. The allocation based on the number of accidents is as follows: City A = $ 191129.03

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Alamo Power historically allocates IDC for its safety program to generation facilities in
Cities A and B based on the number of employees. Last year, $300,000 was distributed
and the employee count was 790 in city A and 450 in city B. Implementation of the ABC
method took place this year to allocate IDC on the basis of number of accidents. City A
reported 320 events and city B had 142 accidents reported.
Determine the allocation based on the number of accidents.
The allocation based on the number of accidents is as follows:
City A = $191129.03
City B = $ 108870.9
Transcribed Image Text:Required information Alamo Power historically allocates IDC for its safety program to generation facilities in Cities A and B based on the number of employees. Last year, $300,000 was distributed and the employee count was 790 in city A and 450 in city B. Implementation of the ABC method took place this year to allocate IDC on the basis of number of accidents. City A reported 320 events and city B had 142 accidents reported. Determine the allocation based on the number of accidents. The allocation based on the number of accidents is as follows: City A = $191129.03 City B = $ 108870.9
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