q 4

Tight Closures manufactures bolts and screws in separate divisions utilizing one plant location. The following data have been prepared for review. $520,000 Fixed operation costs 1,500 hours Practical capacity Budgeted usage 850 hours Bolt Division 400 hours Screw Division $480 per hour Budgeted variable cost per hour What are the fixed cost per year and the variable cost per hour for the Tight Closure Screw Division if the dual -rate method is used? Assume that the allocation bases are budgeted usage for fixed costs and for variable costs O A. $134,043 rounded and $480 OB. $166,400 and $480 O c. $134,043 rounded and $400 OD. $126,000 and $400 O E $100,270 and $480