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Ilumination Corporation operates one central plant that has two divisions, the Flashlight Division and the Night Light Division. The following data apply to the
Ilumination Corporation operates one central plant that has two divisions, the Flashlight Division and the Night Light Division. The following data apply to the coming budget year Budgeted costs of operating the plant for 2,000 to 3,000 hours Fixed operating costs per year Variable operating costs Budgeted long-run usage per year Flashlight Division Night Light Division Practical capacity Assume that practical capacity is used to calculate the allocation rates. $480,000 $700 per hour 1.500 hours 600 hours 3.000 hours Actual usage for the year by the Flashlight Division was 1,400 hours and by the Night Light Division was 700 hours. If a dual-rate cost-allocation method is used, what amount of operating costs will be budgeted for the Night Light Division? OA $730,000 OB. $516,000 Oc. $002,000 Op. $532.000
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