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23) The Computer Department in a large company provides services to many departments. The cost driver for costs in the Computer Department is the number
23) The Computer Department in a large company provides services to many departments. The cost driver for costs in the Computer Department is the number of computer hours. When allocating fixed costs of the Computer Department to a user department such as Department A, which of the following formulas is used? A) budgeted fixed cost * (budgeted hours to be used by Department A/total available capacity hours of Computer Department) B) budgeted fixed cost * (actual hours used by Department A/total available capacity hours of Computer Department) C) actual fixed cost * (budgeted hours to be used by Department A/total available capacity hours of Computer Department) D) actual fixed cost * (actual hours used by Department A/total available capacity hours of Computer Department)
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