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74. FIGURE 7-5 Stronghold, Inc., operates a brochure business at two different locations. Stronghold, Inc., has department that is responsible for cleaning, service, and
74. FIGURE 7-5 Stronghold, Inc., operates a brochure business at two different locations. Stronghold, Inc., has department that is responsible for cleaning, service, and maintenance of its printing equipment support department are allocated to each brochure center on the basis of total brochures made. During the first month, the costs of the support department were expected to be $400,000. Of t $120,000 is considered a fixed cost. During the month, the support department incurred actual $256,000 and actual fixed costs of $144,000. Normal and actual activity (brochures made) are as follows: Normal activity (brochures) Actual activity (brochures) Brochure Center 1 Brochure 1,200,000 1,000,000 800,000 880,000 Refer to Figure 7-5 For purposes of performance evaluation, fixed costs allocated to Brochure Center 1 are A. $60,000. B. $72,000. C. $65,600. D 675 200
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