Use the information below to answer the following question(s).
We Be Warehouse Fitness Equipment incurred $80,000 of common fixed costs and $120,000 of common variable costs. Data are provided below for the capacity allowed and the capacity used.
For both departments, common fixed costs are to be allocated on the basis of capacity available and common variable costs are to be allocated on the basis of capacity used.
-The fixed and variable costs allocated to the Barbell Department are
A) $50,000 and $75,000, respectively.
B) $50,000 and $60,000, respectively.
C) $30,000 and $75,000, respectively.
D) $30,000 and $60,000, respectively.
E) $30,000 and $50,000 respectively.

Question

Use the information below to answer the following question(s).
We Be Warehouse Fitness Equipment incurred $80,000 of common fixed costs and $120,000 of common variable costs. Data are provided below for the capacity allowed and the capacity used.
  For both departments, common fixed costs are to be allocated on the basis of capacity available and common variable costs are to be allocated on the basis of capacity used.
-The fixed and variable costs allocated to the Barbell Department are
A) $50,000 and $75,000, respectively. 
B) $50,000 and $60,000, respectively. 
C) $30,000 and $75,000, respectively. 
D) $30,000 and $60,000, respectively. 
E) $30,000 and $50,000 respectively.

Quizplus · Accepted Answer

Barbell: [(500/(300 + 500)) × $80,000] = $50,000 fixed cost
[(400/(400 + 400)) × $120,000] = $60,000 variable cost

Use the Information Below to Answer the Following Question(s)