The fixed costs of operating the maintenance facility of General Hospital are $4,500,000 annually. Variable costs are incurred at the rate of $30 per maintenance-hour. The facility averages 40,000 maintenance-hours a year. Budgeted and actual hours per user for 2017 are as follows:
| Budgeted hours | Actual hours |
| Building and grounds | 10,000 | 12,000 |
| Operating and emergency | 8,000 | 8,000 |
Assume that budgeted maintenance-hours are used to calculate the allocation rates.
Required:
a. If a single-rate cost-allocation method is used, what amount of maintenance cost will be budgeted for each department?
b. If a single-rate cost-allocation method is used, what amount of maintenance cost will be allocated to each department based on actual usage?
c .If a dual-rate cost-allocation method is used, what amount of maintenance cost will be budgeted for each department?
d. If a dual-rate cost-allocation method is used, what amount of maintenance cost will be allocated to each department based on actual usage? Based on budgeted usage for fixed operating costs and actual usage for variable operating costs?
General structure of an animal cell
Inhaled General Anesthetics
General structure of a virus.
Antineutrophil cytoplasmic antibody staining patterns. Indirect immunofluorescence of ethanol-fixed ...
The General Process of Sensation
Last year, Terrific Copying had total revenue of $475 000, while operating at 60% of capacity. ...