Remain Company produces baked goods. Utility costs are allocated to the products based on the baking time required for the product. Utility costs of $225,000 are budgeted in a period when 450,000 total minutes of baking time are anticipated. If a batch of rolls bakes for 20 minutes, what amount of utility cost will be allocated to the rolls? a. $10 b. $40 C. $50 d. $45

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...
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Remain Company produces baked goods. Utility costs
are allocated to the products based on the baking
time required for the product. Utility costs of $225,000
are budgeted in a period when 450,000 total minutes
of baking time are anticipated. If a batch of rolls bakes
for 20 minutes, what amount of utility cost will be
allocated to the rolls?
a. $10
b. $40
C. $50
d. $45
Transcribed Image Text:Remain Company produces baked goods. Utility costs are allocated to the products based on the baking time required for the product. Utility costs of $225,000 are budgeted in a period when 450,000 total minutes of baking time are anticipated. If a batch of rolls bakes for 20 minutes, what amount of utility cost will be allocated to the rolls? a. $10 b. $40 C. $50 d. $45
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