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Answer the following questions using the mIa The Quickjet Aircraft Corporation has a central materials laboratory. The laboratory has only two users, the Large Plane
Answer the following questions using the mIa The Quickjet Aircraft Corporation has a central materials laboratory. The laboratory has only two users, the Large Plane Department and the Small Plane Department. The following data apply to the coming budget year: Budgeted costs of operating the materials laboratory for 100,000 to 200,000 technician hours per year: Fixed costs per year Variable costs Budgeted long-run usage in hours per year: Large Plane Department Small Plane Department $6,000,000 $80 per technician hour 90,000 technician hours 70,000 technician hours Budgeted amounts are used to calculate the allocation rates. Actual usage for the year by the Large Plane Department was 60,000 technician hours the Sma Il Plane Department was 65,000 technician hours. 4) If a dual-rate cost-allocation method is used, what amount of materials laboratory costs will be allocated to the Large Plane Department? Assume budgeted usage is used to allocate fixed materials laboratory costs and actual usage is used to allocate variable materials laboratory costs. A) $7,825,000 B) $8,175,000 C) $8,225,000 D) $7,050,000 5) If a dual-rate cost-allocation method is used, what amount of materials laboratory costs will be budgeted for the Small Plane Department? A) $10,575,000 B) $7,637,500 C) $7,050,000 D) $8,225,000 6) If a dual-rate cost-allocation method is used, what amount of materials laboratory costs will be allocated to the Small Plane Department? Assume budgeted usage is used to allocate materials laboratory costs and actual usage is used to allocate variable materials laboratory costs. A) $8,225,000 B) $7,825,000 C) $8,175,000 D) $7,637,500
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