Answer the following questions using the information below:
The Outback Aerial Medicorp has a central materials area (CMA) .The CMA has only two users,the Large Plane Department and the Small Plane Department.The following data apply to the coming budget year:
Budgeted costs of operating the CMA for 10000 to 20000 technician hours per year:
Fixed costs per year
Variable costs per technician hour
Budgeted long-run usage in hours per year:
Large Plane Department 9000 technician hours
Small Plane Department 7000 technician hours Budgeted amounts are used to calculate the allocation rates.
Actual usage for the year by the Large Plane Department was 7500 technician hours and by the Small Plane Department was 6500 technician hours.
-If a single-rate cost-allocation method is used,what amount of CMA costs will be allocated to the Large Plane Department?
A) $822 500
B) $763 750
C) $1 057 500
D) $1 031 250
Correct Answer:
Verified
Q1: Benefits of the dual-rate method include:
A)information that
Q2: If costs are used as a basis
Q3: Answer the following questions using the
Q4: Answer the following questions using the
Q5: What is the name of the method
Q7: Answer the following questions using the
Q8: Answer the following questions using the
Q9: Answer the following questions using the
Q10: Answer the following questions using the
Q11: Answer the following questions using the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents