A company incurred $120,000 of common fixed costs and $180,000 of common variable costs. These costs are to be allocated to Departments XX and YY. Data on capacity provided and capacity used are as follows: Department XX YY Capacity Provided in Hours 500 300 Capacity Used in Hours 400 400 Assume that common fixed costs are to be allocated to Departments XX and YY on the basis of capacity provided and that common variable costs are to be allocated to Departments XX and YY on the basis of capacity used. The fixed and variable costs allocated to Department XX are: Fixed Variable $75,000 $112,500 O b. $75,000 $90,000 Ос $60,000 $112,500 Od $60,000 $90,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A company incurred $120,000 of common fixed costs and $180,000 of common variable costs. These costs are to be allocated to Departments XX and YY. Data on capacity
provided and capacity used are as follows:
Department
XX
YY
Capacity Provided
in Hours
500
300
Capacity Used
in Hours
400
400
Assume that common fixed costs are to be allocated to Departments XX and YY on the basis of capacity provided and that common variable costs are to be allocated to
Departments XX and YY on the basis of capacity used. The fixed and variable costs allocated to Department XX are:
Fixed
Variable
$75,000
$112,500
O b.
$75,000
$90,000
Ос
$60,000
$112,500
Od
$60,000
$90,000
Transcribed Image Text:A company incurred $120,000 of common fixed costs and $180,000 of common variable costs. These costs are to be allocated to Departments XX and YY. Data on capacity provided and capacity used are as follows: Department XX YY Capacity Provided in Hours 500 300 Capacity Used in Hours 400 400 Assume that common fixed costs are to be allocated to Departments XX and YY on the basis of capacity provided and that common variable costs are to be allocated to Departments XX and YY on the basis of capacity used. The fixed and variable costs allocated to Department XX are: Fixed Variable $75,000 $112,500 O b. $75,000 $90,000 Ос $60,000 $112,500 Od $60,000 $90,000
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