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Author Question: The Speedjet Aircraft Corporation has a central materials laboratory. The laboratory has only two ... (Read 66 times)

cherise1989

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on: Mar 6, 2021
The Speedjet Aircraft Corporation has a central materials laboratory. The laboratory has only two users, the Large Plane Department and the Small Plane Department. The following data apply to the coming budget year:

Budgeted costs of operating the materials laboratory
for 100,000 to 200,000 technician hours per year:
Fixed costs per year$8,200,000
Variable costs$74 per technician hour
Budgeted long-run usage in hours per year:
Large Plane Department90,000 technician hours
Small Plane Department110,000 technician hours

Budgeted amounts are used to calculate the allocation rates.

Actual usage for the year by the Large Plane Department was 70,000 technician hours and by the Small Plane Department was 80,000 technician hours. If a dual-rate cost-allocation method is used, what amount of materials laboratory costs will be budgeted for the Small Plane Department?
◦ $14,153,333
◦ $10,293,333
◦ $9,200,000
◦ $12,650,000
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by cherise1989 on Mar 6, 2021

ladyjames123

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Reply #1 on: Mar 6, 2021
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cherise1989

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Reply 2 on: Mar 6, 2021
Wow, this really help

emsimon14

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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