Charlie Company Has Provided the Following Data Concerning Power Consumption

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