The Quickjet Aircraft Corporation has a central materials laboratory. The laboratory) two users, the Large Plane Department and the Small Plane I apply to the coming budget yeart the Small Plane Departiment. The following data Budgeted costs of operating the materials laboratory 00,000 to 200,000 technician houwrs per year Fixed costs per year Variable costs $6,000,000 $80 per technician hour Budgeted long-run nsage in hours per year Large Plane Department Small Plane Department 90,000 technician hours 70,000 sechnician hours Budgeted amounts are used to calculate the allocation rates 60,000 technician hours and Actual usage for the year by the Large Plane Department was the Small Plane Department was 65.000 tochnician C) S18,800,000 D) $16,000,000 Answer: A Explanation: A) $10,575,000 Diff: 2 Tems: dual-ratc cos-allocation method AACSB: Analytical skills 3) If a single-rate cost-allocation method is used, what amount of materials laboratory costs will be allocated to the Large Plane Department? Assume actual usage is used to allocate copying costs. A) $ 10,575,000 B) S ,225.000 C) $7,637.500 D) $7,050,000 USE LECTURE NOTES TO ANSWER THIS QUESTION 4) If a dual-rate cost-allocation method is used, what amount of materials laboratory costs will be allocated to the Large Plane Department? Assum fixed materials laboratory costs and actual usage laboratory costs. A) $7,825,000 B) $8,175,000 C) $8,225,000 D) $7,050,000 e budgeted usage is used to allocate is used to allocate variable materials USE LECTURE NOTES TO ANSWER THIS QUESTION 5) If a dual-rate cost-allocation method is used, what amount of materials laboratory costs will be budgeted for the Small Plane Department? A) $10,575,000 B) $7,637,500 C) $7,050,000 D) $8,225,000