The fixed costs of Black Company's personnel department are allocated to operating departments on the basis of
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Question:
Operating Department | ||
X | Y | |
Direct labor-hours — Long-run average | 22,000 | 17,000 |
Direct labor-hours — Actual | 17,000 | 13,000 |
The fixed costs of the personnel department are budgeted at $89,700 per year and are incurred in order to support long-run average requirements. How much of this fixed cost should be charged to Operating Department X at the end of the year for performance evaluation purposes?
$56,000.
$63,347.
$50,600.
$39,100.
Related Book For
Materials and process in manufacturing
ISBN: 978-0471656531
9th edition
Authors: E. Paul DeGarmo, J T. Black, Ronald A. Kohser
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