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Author Question: The Speedjet Aircraft Corporation has a central materials laboratory. The laboratory has only two ... (Read 61 times)

james

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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 150,000 to 250,000 technician hours per year:
Fixed costs per year$8,000,000
Variable costs$70 per technician hour
Budgeted long-run usage in hours per year:
Large Plane Department90,000 technician hours
Small Plane Department70,000 technician hours

Budgeted amounts are used to calculate the allocation rates.

Actual usage for the year by the Large Plane Department was 80,000 technician hours and by the Small Plane Department was 120,000 technician hours. If a dual-rate cost-allocation method is used, what amount of materials laboratory costs will be allocated to the Large Plane Department? Assume budgeted usage is used to allocate fixed materials laboratory costs and actual usage is used to allocate variable materials laboratory costs.
◦ $10,300,000
◦ $10,100,000
◦ $9,600,000
◦ $10,800,000


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Marked as best answer by james on Mar 6, 2021

Kaytorgator

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james

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review


Mochi

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

 

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