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The Quickjet Aircraft Corporation has a central materials laboratory. The laboratory has only two users, the Large Plane Department and the Small Plane Department. The
The Quickjet Aircraft Corporation has a central materials laboratory. The laboratory has only two users, the Large Plane Department and the Small Plane Department. The following data apply to the coming budget year Budgeted costs of operating the materials laboratory for 100,000 to 200,000 technician hours per year Fixed costs per year Variable costs $6,000,000 $80 per technician hour Budgeted long-run usage in hours per year: Large Plane Department Small Plane Department technician hours technician hours 90,000 0000, 000 ooox Budgeted amounts are used to calculatetheallocation rates.-29000,00 \9 00 Actual usage for the year by the Large Plane Department was 60,000 technician hours and by the Small Plane Department was 65,000 technician hours 1) If a single-rate cost-allocation method is used, what is the allocation rate per hour used? A)$80.00 $117.50 C) $146.67 D) $100.00 Answer:EB Explanation: B) $117.50/ per hour used 2) If a dual-rate cost-allocation method is used, what amount of materials laboratory costs will be budgeted for the Large Plane Department? A) $ 10,575,000 B) $8,225,000 14
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