Pineapples Inc. has four operating departments that receive support from Information Systems Technology department. Below is the IT hours each department plans to use (Expected Usage) and its Actual Usage of the support department. Dept A Dept B Dept C Expected Usage 500 300 200 Actual Usage 560 200 240 The Information Systems department has estimated its overhead costs as follows: Fixed Overhead of $12,000 and Variable Overhead of $8,000 (variable rate of $8.00 per IT Hour). If Pineapples uses a Single Rate based on Budgeted Usage, how much support costs will be allocated to Department A?

Pineapples Inc. has four operating departments that receive support from Information Systems Technology department. Below is the IT hours each department plans to use (Expected Usage) and its Actual Usage of the support department. Dept A Dept B Dept C Expected Usage 500 300 200 Actual Usage 560 200 240 The Information Systems department has estimated its overhead costs as follows: Fixed Overhead of $12,000 and Variable Overhead of $8,000 (variable rate of $8.00 per IT Hour). If Pineapples uses a Single Rate based on Budgeted Usage, how much support costs will be allocated to Department A?

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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