Question
A firm has two production departments: Department X and Department Y. Both production departments are supported by two service departments: Department A (i.e. the power
A firm has two production departments: Department X and Department Y.
Both production departments are supported by two service departments: Department A (i.e. the power department) and Department B (i.e. the maintenance department). Departments A and B also consume service from one another.
The work done by Departments A and B is summarized in the table below (work by Department A is in kilowatt-hours; work by Department B is in labor hours).
Work provided By | A | B | X | Y |
Department A | 0 | 50 | 125 | 75 |
Department B | 250 | 0 | 50 | 200 |
Costs of Department A are $200,000, and costs for Department B are $80,000.
What percentage of maintenance department labor hours are consumed by the power department?
A) 20%
B) 50%
C) 100%
D) 80%
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