Answer the Following Questions Using the Information Below:
Hugo, Owner $\text { Budgeted manufacturing overhead costs: }$

question 97

Multiple Choice

Answer the following questions using the information below:
Hugo, owner of Automated Fabric, Inc., is interested in using the reciprocal allocation method. The following data from operations were collected for analysis:
$\text { Budgeted manufacturing overhead costs: }$
$\begin{array}{llr}\text { Maintenance } & \text { M (Support Dept) } & \$ 300,000 \\\text { Personnel } & \mathrm{P} \text { (Support Dept) } & \$ 160,000 \\\text { Weaving } & \text { W (Weaving Dept) } & \$ 650,000 \\\text { Colorizing } & \mathrm{C} \text { (Colorizing Dept) } & \$ 350,000\end{array}$

$\begin{array}{ll}\text { Services fumished: }\\\text { By Maintenance (bud geted labor-hours) : }\\\text { to Personnel } & 1,000 \\\text { to Weaving } & 7,000 \\\text { to Colorizing } & 4,000\\\text { By Personnel (Number of employees serviced) : }\\\text { Plant Maintenance } & 10 \\\text { Weaving } & 30 \\\text { Colorizing } & 20\end{array}$
-What is the complete reciprocated cost of the Personnel Department?

• A) $185,000
• B) $187,606
• C) $160,000
• D) $210,000

Explain the purpose and process of depreciation in accounting.

Understand the significance of revenue, net income, and expense in financial statements.

Grasp the concept of cash flow and its importance for short-term financial decision-making.

Identify and explain the differences between assets, liabilities, and equity.

---

Definitions:

Future Profit

The expected earnings or economic benefits that a company or investment will generate in future periods.

ROI

Return on Investment measures the gain or loss generated on an investment relative to the amount of money invested.

Segmentation Approach

A marketing strategy that divides a broad target market into subsets of consumers who have common needs, interests, and priorities.

Similarities

The aspects or characteristics that two or more entities have in common, allowing for comparisons or associations.