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13 Not yet answered Marked out of 1 Flag question Jerusalem Industrial Company has a central data processing department and wants to allocate the cost
13 Not yet answered Marked out of 1 Flag question Jerusalem Industrial Company has a central data processing department and wants to allocate the cost of data processing department to the following three operating departments (1) fabricating, (2) machining, and (3) sales. Cost accountant adopts the data processing hours as the allocation base for the cost of data processing department. Budgeted Cost of operating the data processing department: Annual Fixed Cost $60,000, Variable Cost $5 per data processing hour. Budgeted annual usage of hours: Fabricating Department 40,000- Hour, Machining Department 30,000-Hour, and Sales Department 50,000-Hour. Actual usage for the year by the Fabricating Department was 30,000 hours, by the Machining Department was 35,000 hours, and by the Sales Department 42,000 hours. If a dual-rate cost-allocation method is used, what amount of fixed data processing costs will be allocated to the Fabricating Department? Oa. $16,822 O b. $20,000 Oc. $15,000 O d. $16,100
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