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A company purchased a phone system to provide 2,000 phone lines. The annual depreciation expense for the system is $300,000 and the variable operating cost
A company purchased a phone system to provide 2,000 phone lines. The annual depreciation expense for the system is $300,000 and the variable operating cost is $175 per line. Currently the company is only using 1,500 of the expected 2,000 lines. If costs are allocated using practical capacity ______. (SELECT MULTIPLE) a. a total of $75,000 will be charged as a companywide expense b. each line currently be used will be charged $200 of depreciation expense c. each line currently being used will be charged $175 of variable cost d. a total of $162,500 will be charged as a companywide expense
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