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Werksan Inc. has a central molding laboratory. The laboratory has only two users, the Bumper Plate Department and the Competition Plate Department. The following data
Werksan Inc. has a central molding laboratory. The laboratory has only two users, the Bumper Plate Department and the Competition Plate Department. The following data apply to the coming budget year: Budgeted costs of operating the molding laboratory for 100,000 to 200,000 technician hours per year: Budgeted long-run usage in hours per year: Budgeted amounts are used to calculate the allocation rates. Actual usage for the year by the Bumper Plate Department was 70,000 technician hipurs and by the Competition Plate Department was 78,000 technician hours. If a dual-rate cost-allocation method is used, what amount of testing laboratory costs will be allocated to the Bumper Plate Department? (due to possible rounding differences, choose the answer closest to your answer) $11,433,333 $9,072,903 $8,287,097 $8,750,000 $8,166,667 What is the total amount of variable costs that Werksan budgeted for the Molding laboratory for the coming year (meaning, how much did Werksan think they would spend on variable costs for the Molding laboratory)
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