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The Corporation Victor operates one central plant that has one support department and two production divisions: Division 1 and Division 2. The following data apply
The Corporation "Victor" operates one central plant that has one support department and two production divisions: Division 1 and Division 2. The following data apply to the coming budget year Budgeted costs of the support department Fixed operating costs Variable operating costs Practical capacity Budgeted long-run usage Division 1 Division 2 $260,000 $100 per hour 2,000 hours 800 hours per year 500 hours per year Assume that actual usage of the Division I was 900 hours and the Division 2 was 400 hours. Assume that annual budgeted long-run usage. (Demand) is used to calculate the allocation rates for the Division I and Division 2 of Corporation "Victor" Required: If a dual-rate cost-allocation method is used, what amount of cost will be allocated to the Division 1? To the Division 27 A $120.864 and $101,799 OB $250,000 and $140,000 C$230,000 and $140,000 Question 20 of 27
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