Charlie Company Has Provided the Following Data Concerning Power Consumption

question 43

Multiple Choice

Charlie Company has provided the following data concerning power consumption in the company's two operating departments: The company has a Power Services department which provides electrical power for the operating departments. Fixed costs in Power Services are budgeted at $300,000 for the year and are incurred in order to support peak-period power requirements. How much of this cost should be charged to Department 1?

• A)$120,000
• B)$150,000
• C)$180,000
• D)$0

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Definitions:

Workforce

The collection of all employees or workers in a company, organization, or economy.

Decrease

A reduction in size, quantity, or degree.

Relationship Management

The strategy of maintaining a positive relationship with customers and other stakeholders to promote loyalty and long-term engagement.

Ongoing

Continuing in progress, operation, or development without immediate termination.