King Khan Corporation (KKC) manufactures kongs and kangs,the production of which requires considerable energy.Power generation department costs amounted to $4 million this month,for a total of 50 million kilowatt hours (kwh) supplied to the plant.Analysis shows that 40% of power generation costs are fixed.This month the Kong Dept.made 5 million kongs,each using 4 kwh,and the Kang Dept.made 4 million kangs,each using 6 kwh. In the following month,the power generation department costs amounted to $4.3 million for 51 million kwh.Kong Dept.'s usage was the same,but the Kang Dept.increased output to 4.1 million kangs,each using the standard power allowance.If KKC employs an insulating cost allocation mechanism,and fixed costs are shared equally,which is true?
A) Kang will be charged $2.37 million
B) Kong will be charged $1.93 million
C) Kang will be charged $2.48 million
D) Kang will be charged $2.29 million
E) None of the choices are correct
Correct Answer:
Verified
Q1: Pluton makes particular plastics for sale
Q2: You are going to dinner with
Q4: Pluton makes particular plastics for
Q5: Pluton makes particular plastics for
Q6: 10. King Khan Corporation (KKC)manufactures kongs and
Q7: Carla Book is a tax attorney
Q8: Pluton makes particular plastics for sale
Q9: Which of the following is not true
Q10: Pluton makes particular plastics for
Q11: Which of the following is true about
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents