Hugo,owner of Automated Fabric,Inc

question 109

Multiple Choice

Hugo,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:
By Maintenance (budgeted labor-hours) :

By Personnel (Number of employees serviced) :

What is the complete reciprocated cost of the Personnel Department? (Do not round any intermediary calculations. )

• A)$170,000
• B)$208,140
• C)$180,000
• D)$213,012

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Definitions:

Partial Equilibrium

Partial equilibrium is an analysis of the equilibrium position of a single market or sector within the wider economy, without considering interactions with other markets or sectors.

Substitutes

Two goods for which an increase in the price of one leads to an increase in the quantity demanded of the other.

General Equilibrium Analysis

Simultaneous determination of the prices and quantities in all relevant markets, taking feedback effects into account.

Partial Equilibrium Analysis

Determination of equilibrium prices and quantities in a market independent of effects from other markets.