Solved

The Cost of Operating the Quality Control Department of Strongsville

Question 125

Essay

The cost of operating the Quality Control Department of Strongsville Manufacturing includes $850,000 of fixed costs and $550,000 of variable costs.The department normally budgets 20,000 inspection hours a year.Two departments, Fabrication and Assembly, receive quality control checks.Fabrication is budgeted at 1,000 hours a month, while Assembly is budgeted the remainder.In August, Fabrication used 1,200 inspection hours and Assembly used 900 hours.
How much did each department receive in quality control costs, assuming a single rate is used based on budgeted hours?

Correct Answer:

verifed

Verified

Total costs = $850,000 + $550,...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents