(Appendix 11B) Mannerman Products, Inc

question 16

Multiple Choice

(Appendix 11B) Mannerman Products, Inc., 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:
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%.
-For performance evaluation purposes,how much of the electric power plant's fixed costs should be charged to the Fabrication department at the end of the month for purposes of evaluating performance?

• A) $18,000
• B) $24,000
• C) $30,000
• D) $26,000

---

Definitions:

Double-blind Technique

A research method in which both the subjects and the experimenters are unaware of who is receiving the treatment, to eliminate bias.

Seasickness

A form of motion sickness characterized by nausea and, in severe cases, vertigo, induced by the swaying movement of a ship at sea.

Inactive Pill

a placebo or sugar pill that has no active medical ingredients, often used in control groups during studies.

Antianxiety Drug

Medication that reduces or controls anxiety symptoms.