A company incurred £20,000 of common fixed costs and £30,000 of common variable costs. These costs are to be allocated to Departments X and Y. Data on capacity provided and capacity used are as follows: Assume that common fixed costs are to be allocated to Departments X and Y on the basis of capacity provided and that common variable costs are to be allocated to Departments X and Y on the basis of capacity used. The fixed and variable costs allocated to Department X are

A) £12,500 £18,750
B) £12,500 £15,000
C) £10,000 £18,750
D) £10,000 £15,000

Question

A company incurred £20,000 of common fixed costs and £30,000 of common variable costs. These costs are to be allocated to Departments X and Y. Data on capacity provided and capacity used are as follows: Assume that common fixed costs are to be allocated to Departments X and Y on the basis of capacity provided and that common variable costs are to be allocated to Departments X and Y on the basis of capacity used. The fixed and variable costs allocated to Department X are
 
A) £12,500 £18,750 
B) £12,500 £15,000 
C) £10,000 £18,750 
D) £10,000 £15,000

Quizplus · Accepted Answer

The Answer of A company incurred £20,000 of common fixed costs and £30,000 of common variable costs. These costs are to be allocated to Departments X and Y. Data on capacity provided and capacity used are as follows: Assume that common fixed costs are to be allocated to Departments X and Y on the basis of capacity provided and that common variable costs are to be allocated to Departments X and Y on the basis of capacity used. The fixed and variable costs allocated to Department X are
 
A) £12,500 £18,750 
B) £12,500 £15,000 
C) £10,000 £18,750 
D) £10,000 £15,000

A Company Incurred £20,000 of Common Fixed Costs and £30,000