Sweet Treats Bakery produces a variety of pastries. Utility costs are allocated to the products based on the baking time required for each product. The budgeted utility costs for the period are $300,000, and the total anticipated baking time for the period is 600,000 minutes. If a batch of muffins bakes for 25 minutes, how much utility cost will be allocated to the muffins? a) $12.50 b) $20 c) $15 d) $10

Cornerstones of Cost Management (Cornerstones Series)
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Chapter13: The Balanced Scorecard: Strategic-based Control
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allocated utility cost for a batch of muffins is

Sweet Treats Bakery produces a variety of
pastries. Utility costs are allocated to the products
based on the baking time required for each
product. The budgeted utility costs for the period
are $300,000, and the total anticipated baking time
for the period is 600,000 minutes.
If a batch of muffins bakes for 25 minutes, how
much utility cost will be allocated to the muffins?
a) $12.50
b) $20
c) $15
d) $10
Transcribed Image Text:Sweet Treats Bakery produces a variety of pastries. Utility costs are allocated to the products based on the baking time required for each product. The budgeted utility costs for the period are $300,000, and the total anticipated baking time for the period is 600,000 minutes. If a batch of muffins bakes for 25 minutes, how much utility cost will be allocated to the muffins? a) $12.50 b) $20 c) $15 d) $10
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