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Actual usage for the year by the Large Plane Department was 80,000 technician hours and by the Small Plane Department was 120,000 technician hours. If a dual-rate cost-allocation method is used, what amount of materials laboratory costs will be allocated to the Small Plane Department? Assume budgeted usage is used to allocate fixed materials laboratory costs and actual usage is used to allocate variable materials laboratory costs.

Actual usage for the year by the Large Plane Department was 80,000 technician hours and by the Small Plane Department was 120,000 technician hours. If a dual-rate cost-allocation method is used, what amount of materials laboratory costs will be allocated to the Small Plane Department? Assume budgeted usage is used to allocate fixed materials laboratory costs and actual usage is used to allocate variable materials laboratory costs.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Budgeted costs of operating the materials laboratory for 150,000 to 250,000 technician hours per year: Fixed costs per year Variable costs $8,600,000 O A. $11,562,500 OB. $14,250,000 O C. $8,312,500 O D. $11,000,000 $65 per technician hour Budgeted long-run usage in hours per year: Large Plane Department Small Plane Department Budgeted amounts are used to calculate the allocation rates. Actual usage for the year by the Large Plane Department was 80,000 technician hours and by the Small Plane Department was 120,000 technician hours. If a dual - rate cost - allocation method is used, what amount of materials laboratory costs will be allocated to the Small Plane Department? Assume budgeted usage is used to allocate fixed materials laboratory costs and actual usage is used to allocate variable materials laboratory costs. 90,000 technician hours 70,000 technician hours C....
Transcribed Image Text:Budgeted costs of operating the materials laboratory for 150,000 to 250,000 technician hours per year: Fixed costs per year Variable costs $8,600,000 O A. $11,562,500 OB. $14,250,000 O C. $8,312,500 O D. $11,000,000 $65 per technician hour Budgeted long-run usage in hours per year: Large Plane Department Small Plane Department Budgeted amounts are used to calculate the allocation rates. Actual usage for the year by the Large Plane Department was 80,000 technician hours and by the Small Plane Department was 120,000 technician hours. If a dual - rate cost - allocation method is used, what amount of materials laboratory costs will be allocated to the Small Plane Department? Assume budgeted usage is used to allocate fixed materials laboratory costs and actual usage is used to allocate variable materials laboratory costs. 90,000 technician hours 70,000 technician hours C....
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