Answer the Following Question(s)using the Information Below

question 14

Multiple Choice

Answer the following question(s) using the information below.Joanne, owner of Automated Fabric, Inc., is interested in using the reciprocal allocation method.The following data from operations were collected for analysis:
Budgeted manufacturing overhead costs:
Services furnished:

-Which of the following linear equations represents the complete reciprocated cost of the Personnel Department?

• A)P = $150,000 - $80,000 (500/6,000)M
• B)P = (500/6,000)M
• C)P = $80,000 + (500/6,000)M
• D)P = $80,000
• E)P = $150,000 + (500/6,000)M

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Definitions:

Asset

Resources owned by a business that have economic value and can provide future benefits.

Liability

Financial obligations or debts that a company owes to others, recorded on the balance sheet.

Prepaid Rent

An expense that has been paid in advance, recorded as an asset on the balance sheet, and allocated over the period the payment covers.

Rent Expense

An accounting term that refers to the cost incurred by a company to utilize property or equipment for business operations, typically recognized over the lease term.