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

question 67

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:
$\text { Budgeted manufacturing overhead costs: }$
$\begin{array}{llr}\text { Maintenance } & \text { M (Support Dept) } & \$ 300,000 \\\text { Personnel } & \mathrm{P} \text { (Support Dept) } & \$ 160,000 \\\text { Weaving } & \text { W (Weaving Dept) } & \$ 650,000 \\\text { Colorizing } & \mathrm{C} \text { (Colorizing Dept) } & \$ 350,000\end{array}$

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

• A) P = $300,000 - $160,000 (1,000/12,000) M
• B) P = (1,000/12,000) M
• C) P = $160,000 + (1,000/12,000) M
• D) P = $160,000

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Definitions:

Force Field Analysis

Force field analysis is a management technique developed by Kurt Lewin, used for decision-making that analyzes the forces for and against a change to identify which factors are helping or hindering a goal or project.

Unfreezing

The initial stage in the change process where existing beliefs and behaviors are challenged in preparation for change.

Organization Change

The process by which companies or organizations undergo transformations in structure, strategies, processes, or culture.

Parallel Learning Structures

Systems designed to exist alongside formal organizational structures, facilitating learning and innovation without disrupting everyday operations.