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Allocation: Fixed and Variable Costs, Budgeted Fixed and Variable Costs Biotechtron, Inc., has two Yuma office. The legal services support center has budgeted fixed costs
Allocation: Fixed and Variable Costs, Budgeted Fixed and Variable Costs Biotechtron, Inc., has two Yuma office. The legal services support center has budgeted fixed costs of $159,000 per year and a budgeted variable rate of $67 per hour of professional time. The normal usage of the legal services center is 2,530 hours per year for the Yume office and 2,070 hours per year for the Bernalillo office. This corresponds to the expected usage for the coming year Required 1. Determine the amount of le al services support center costs that should b assi ned to each omoe. In your computations carry a o values out to two decimal places. Round your final answers to the nearest dollar if rounding is required. Yuma Bemalillo esearch labora o esn the Southwes t, one in Yume, Arizone, and the other Berna o New Mex co The owner of B techtron centralized he egal ser ces unction n the Yu a office and had both leboratories send ny egal questions or issues to the 256,410 209,790 2. Sincc the offices produce services, not tangible products, what purpose is served by allocating the budgatod costs? It serves the same purposes as costing out tangible products (e.g, pricing, profitability analysis, and performance evaluation). V 3. Non assume that during the year, the legal services center in red actual fixad costs of $160,800 and actual variable costs of $280 590. It del Determine the amount of the legel services center's costs that should be allocated to each office Yuma Bmalilk 4. Did the costs allocated differ from the costs incurred by the legal services center? Yes Ir so, why? Because the labs were charged based on budgeted costs red 4 170 hours of professional time -2,730 hours to Yuma and 1,440 houto Bernalillo. 288,682X 52,422X
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