LUGSLUI Feip The Service Department determined their budget formula to be $120,000 fixed cost monthly plus $240 per hour of computer time used. Based on long-run predicted usage, the fixed costs were allocated on a lump-sum basis, $35% to business and $65% to engineering. Requirements 1. Show the total allocation if business used 320 hours and engineering used 480 hours in a given month. Assume that the actual costs coincided exactly with the budgeted amount for total usage of 800 hours. 2. Assume the same facts as in number 1 except that the fixed costs were allocated on the basis of actual hours of usage. Show the total allocation of costs to each school. As the dean of the school of business, would you prefer this method or the method in number 17 Explain. Requirement 1. Show the total allocation if business used 320 hours and engineering used 480 hours in a given month. Assume that the actual costs coincided exactly with the budgeted amount for total usage of 800 hours. Business Engineering Fixed costs Variable costs Total costs Enter any number in the edit fields and then click Check Answer. Check Answer 2 parts remaining Clear All Gary's Markets, Inc., has three grocery stores in the metropolitan Denver area. The company allocates ceentral costs using sales as the cost-allocation base. The following are budgeted and actual sales during November: Spruce Irving Noble Central costs of $200,000 are to be allocated in November Requirements 1. Compute the central costs allocated to each store with budgeted sales as the cost-allocation base. 2 Compute the central costs allocated to each store with actual sales as the cost-allocation base. 3. What advantages are there to using budgeted rather than actual sales for allocating the central costs? Budgeted sales $ 600,000 $ 1,000,000 $ 400,000 Actual sales 600,000 715,000 505,000 Requirement 1. Compute the central costs allocated to each store with budgeted sales as the cost-allocation base. (Do not round interim calculations, and then round to the nearest whole dollar.) Spruce Irving Noble Enter any number in the edit fields and then click Check Answer. Check Ariswer Clear All 2 part