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Number 9 is B. Need 10 and 11 Illumination Corporation operates one central plant that has two divisions, the Flashlight Division and the Night Light
Number 9 is B. Need 10 and 11
Illumination 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 2000 to 3000 hours: Fixed operating costs per year $480,000 Variable operating costs $800 per hour Budgeted long-run usage per year. Flashlight Division 1500 hours Night Light Division 600 hours Practical capacity 3000 hours Assume that practical capacity is used to calculate the allocation rates. Actual usage for the year by the Flashlight Division was 1400 hours and by the Night Light Division was 700 hours. If a single-rate cost-allocation method is used, what amount of operating costs will be allocated to the Flashlight Division? Assume budgeted usage is used to allocate operating costs. O a. $1,344,000 b. $1,440,000 O c. $1,360,000 O d. $1,424,000 Clear my choice If a single-rate cost-allocation method is used, what amount of cost will be allocated to the Flashlight Division? Assume actual usage is used to allocate operating costs. O a. $1.440,000 b. $1.360,000 O c. $1,344 000 O d. $1.424,000 Clear my choice If a dual-rate cost-allocation method is used, what amount of cost will be allocated to the Flash Light Division? Assume budgeted usage is used to allocate fixed operating costs and actual usage is used to allocate variable operating costs. O a $1,360,000 O b. $1,344,000 c. $1,424.000 O d. $1.440,000 Clear my choiceStep by Step Solution
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