(Appendix 12B)Manning Products, Inc

question 43

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%. How much (if any) of the electric power plant's actual fixed costs should not be allocated to the other departments?

• A)$0
• B)$10, 000
• C)$5, 000
• D)$20, 000

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Definitions:

Medical License

An official permission for a professional to practice medicine, granted after fulfilling education and examination requirements.

Open-Heart Surgery

A type of surgery where the chest is opened and surgery is performed on the heart muscles, valves, arteries, or other parts of the heart.

Pacemaker

An electronic medical device implanted to regulate the heartbeat by delivering electric pulses to stimulate the heart muscles.

C.Walton Lillehei

Known as the "father of open-heart surgery," he was an American surgeon who played a major role in the development of heart surgery techniques.