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ASM Media manufactures DVDs and CDs in separate divisions utilizing one plant location. The following data have been prepared for review. Fixed operation costs $450,000

ASM Media manufactures DVDs and CDs in separate divisions utilizing one plant location. The following data have been prepared for review.

Fixed operation costs

$450,000

Practical capacity

1,250 hours

Budgeted usage:

DVD Division

1,000 hours

CD Division

175 hours

Budgeted variable cost per hour

$600 per hour

What is the total cost per hour of use for the DVD Division assuming budgeted usage is the allocation base and a single-rate method is used?

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