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Question 2 40 F (40 points) In 2016 (one year later when the rates have changed), Kranworth continued allocating R&D costs among its three divisions
Question 2 40 F (40 points) In 2016 (one year later when the rates have changed), Kranworth continued allocating R&D costs among its three divisions (Retail, Wholesale, Custom) using the dual rates method. The following information for 2016 is available: Actual R&D costs total Budgeted total costs Budgeted fixed Budget (variable cost per hour) Total R&D capacity (hours) 730,000 726,000 495,000 110 2,494 Budgeted hours Total actual hours Retail 550 Wholesale 1,100 1,100 Custom 450 600 500 How much of the 730,000 should be allocated to the retail division? Assume there is only one variable cost rate (no upcharge when actual hours exceed budgeted hours)
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