Break4.(20 marks)

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

Fixed operation costs	$900,000
Practical capacity	2,500 hours
Budgeted usage:
Cassette Division	2,000 hours
CD Division	350 hours
Budgeted variable cost per hour	$400 per hour

A)What is the fixed cost per year and the variable cost per hour, respectively, for the General Media Cassette Division using the dual-rate method, assuming that the allocation bases are capacity for fixed costs and budgeted capacity for variable costs?

B) How would the analysis change if single rate method was used in part a?