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Author Question: Illumination Corporation operates one central plant that has two divisions, the Flashlight Division ... (Read 150 times)

TFauchery

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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 year:

Budgeted costs of operating the plant for 2000 to 3000 hours:
Fixed operating costs per year$500,000
Variable operating costs$850per hour
Budgeted long-run usage per year:
Flashlight Division2000hours
Night Light Division1000hours
Practical capacity4000hours

Assume that practical capacity is used to calculate the allocation rates.

Actual usage for the year by the Flashlight Division was 1500 hours and by the Night Light Division was 800 hours. If a dual-rate cost-allocation method is used, what amount of operating costs will be budgeted for the Night Light Division?
◦ $930,000
◦ $950,000
◦ $975,000
◦ $780,000


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Marked as best answer by TFauchery on Mar 6, 2021

poopface

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TFauchery

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Reply 2 on: Mar 6, 2021
Thanks for the timely response, appreciate it


ricroger

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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