Illumination Corporation operates one central plant that has two divisions, the Flashlight Division and the Night Light Division. The following data apply to the coming budget yearBudgeted costs of operating the plant for 2,000 to 3,000hours:Fixed operating costs per yearVariable operating costsBudgeted long-run usage per yearFlashlight DivisionNight Light DivisionPractical capacity$500,000OA. $500,000B. $625.000OC. $600,000D. $650,000$500 per hour2,000 hours1,000 hours4,000 hoursAssume that practical capacity is used to calculate the allocation ratesActual usage for the year by the Flashlight Division was 1,500 hours and by the Night Light Division was 800 hours If a dual-rate cost-allocation method is used, what amount ofoperating costs will be budgeted for the Night Light Division?

Introduction:- Budgeting plays vital role in every organisation. It is used by every organisation…

Assume that practical capacity is used to calculate the allocation rates Actual usage for the year by the Flashlight Division was 1.500 hours and by the Night Light Division was 800 hours If a dual-rate cost-allocation method is used, what amount operating costs will be budgeted for the Night Light Division? OA. $500,000 B. $625.000 OC. $600,000 OD. $650,000

Assume that practical capacity is used to calculate the allocation rates Actual usage for the year by the Flashlight Division was 1.500 hours and by the Night Light Division was 800 hours If a dual-rate cost-allocation method is used, what amount operating costs will be budgeted for the Night Light Division? OA. $500,000 B. $625.000 OC. $600,000 OD. $650,000

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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