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Assume a company has only one service department and two operating departments (A and B). The service departments budgeted variable costs in total and on

Assume a company has only one service department and two operating departments (A and B). The service departments budgeted variable costs in total and on a per unit basis were $200,000 and $5, respectively. Its total actual variable costs were $211,000. The service departments budgeted and actual fixed costs were $300,000 and $315,000, respectively. The service departments variable costs are allocated to the operating departments based on actual number of employees for the current year, whereas its fixed costs are allocated based on the long-run average number of employees in the operating departments. The following additional information was provided for Departments A and B: Department A Department B Actual number of employees for the current year 9,000 30,000 Long-run average number of employees 12,000 32,000 The amount of the service departments fixed costs that should be charged to Department A is closest to: (Do not round your intermediate calculations.) Multiple Choice $118,125. $85,909. $81,818. $112,500.

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