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The Technology department at Laval Transit has a budgeted annual cost of $65,000. The department has a capacity to handle 250 work stations per year.
The Technology department at Laval Transit has a budgeted annual cost of $65,000. The department has a capacity to handle 250 work stations per year. Currently, purchasing, shipping, and administrative departments have 20, 45, and 135 work stations, respectively. If actual capacity is used to allocate costs, how much cost is allocated to shipping?
| $14,625 |
| $11,700 |
| $6,500 |
| $17,550 |
| none of the above |
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