Cost Allocation and Variances (H. Schaefer) The Coe Company produces its own power for use in operating Departments I and II. At denominator activity, Departments I and II consume 30,000 and 50,000 units of power monthly, making up the total monthly denominator activity of the power plant. The budgeted monthly costs of producing power at denominator activity are as follows:

Fixed costs $6,000 Variable costs 2,400 Total $8,400 The following data apply to Operations during June:
Power fixed costs $ 6,000 Power variable costs , 1,960 Units of power consumed by Dept. | 20,000 Units of power consumed by Dept. II 40,000 In allocating power costs to Departments I and II, the Power Department spending variance is not distributed but the Power Department denominator variance 7s distributed.
Determine the allocation of power costs to Department II for June. lop2