A company incurred $80,000 of common fixed costs and $120,000 of common variable costs. These costs are to be allocated to Departments A and B. Data on capacity provided and capacity used are as follows:

	Capacity Provided	Capacity Used
Department	in Hours	in Hours
A	400	320
B	240	320

Assume that both fixed and variable costs are allocated on the basis of capacity used. The fixed and variable costs allocated to Department A are

Fixed

Variable

a.

$50,000 $75,000

b.

$50,000 $60,000

c.

$40,000 $75,000

d.

$40,000 $60,000