(Appendix 12B)Manning Products, Inc

question 14

Multiple Choice

(Appendix 12B) Manning Products, Inc. , operates an electric power plant that provides all electrical power for the company's Machining and Fabrication Departments.Information on kwh of power usage in these departments for May follows: The costs of the electric power plant are all fixed.The level of budgeted fixed costs is determined by the peak-period requirements.Budgeted fixed costs for May totaled $120, 000.Actual fixed costs for the month totaled $130, 000.The Machining Department requires 70% of the peak-period capacity and the Fabrication Department requires 30%. For performance evaluation purposes, how much of the electric power plant's fixed costs should be charged to the Fabrication Department at the end of the month?

• A)$36, 000
• B)$91, 000
• C)$44, 000
• D)$97, 500

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Definitions:

Lending Money

The act of providing funds to another party with the expectation of being repaid, usually with interest, over a specified period of time.

Investments

Assets purchased with the goal of generating income or appreciating in value over time.

Investing Activity

Transactions involving the purchase and sale of long-term assets and other investments not generally considered as cash equivalents.

Sale Of Land

A transaction involving the transfer of ownership of land property from one party to another.