Answer the Following Questions Using the Information Below:
Dawn,owner of Fraser

question 18

Multiple Choice

Answer the following questions using the information below:
Dawn,owner of Fraser Fabric Pty Ltd is interested in using the reciprocal allocation method.The following data from operations were collected for analysis:
Budgeted manufacturing overhead costs:
$\begin{array} { l l l } \text { Maintenance } & \mathrm { M } \text { (Support Dept) } & \$ 150000 \\ \text { Personnel } & \mathrm { P } \text { (Support Dept) } & \$ 65000 \\ \text { Weaving } & \text { W(Weaving Dept) } & \$ 325000 \\ \text { Colourising } & \text { C (Colourising Dept) } & \$ 175000 \end{array}$

Services furnished:
By Maintenance (budgeted labour-hours) :
to Persontrel 500
to Weaving 3500
to Colourising 2000

By Personnel (number of employees serviced) :
$\begin{array} { l l } \text { Plant Maintenance } & 5 \\ \text { Weaving } & 15 \\ \text { Colourising } & 10 \end{array}$
-Which of the following linear equations represents the complete reciprocated cost of the Personnel Department?

• A)P = $65 000
• B)P = (500/6000)M
• C)P = $65 000 + (500/6000)M
• D)P = $150 000 - $65 000 (500/6000)M

---

Definitions:

Communication Vehicle

A medium or channel through which information, messages, or data are transmitted from a sender to a receiver.

Exert Leverage

The act of using one's advantage or influence to affect or sway outcomes in a desired way.

Particular Negotiation

A negotiation that is specific to a certain context, situation, or set of circumstances.

Designated

Denotes something that has been officially assigned or specified.