Allocation: Flxed and Variable Costs, Budgeted Fixed and Variable Costs Biotechtron, Inc., has two research laboratories in the Southwest, one in Yuma, Arzona, and the other in Bernalillo, New Mexico. The owner of Blotechtron centralized the legal services function in the Yuma office and had both laboratories send any legal questions or ssues to the Yuma office. The legal services Support center has budgeted fixed costs of $176,000 per year and a budgeted variable rate of $62 per hour of professional time. The normal usage of the legal services center is 2,860 hours per year for the Yuma office and 1,540 hours per year for the Bernalillo office. This corresponds to the expected usage for the coming year Required: 1. Determine the amount of legal services support center costs that should be assigned to each office. In your comp Round your final answers to the nearest dollar if rounding is required. utations, carry ratio values out to two decimal places. Yuma Bernalillo 2. Since the offices produce services, not tangible products, what purpose is served by allocating the budgeted costs? It serves the same purposes as costing out tangible products e.g. pricing, profitability analysis, and performance evaluation, 3. Now, assume that during the year, the legal services center incurred actual fixed costs of $178800 and actual varable costs of $281,760. It delivered 4,530 hours of professional time-2,820 hours to Yuma and 1,710 hours to Bernalillo. Determine the amount of the legal services center's costs that should be allocated to each office Yuma Bernalillo 4. Did the costs alloated differ from the costs incurred by the legal services center? Yes V 4. Did the costs allocated differ from the costs incurred by the legal services center? Ves If so, why? Because the labs were charged based on budgeted costs