Klingon Company operates a free cafeteria for the benefit of its employees. Budgeted and actual costs in the cafeteria for last year are given below: Budgeted Actual Variable costs $200,000$168,000 Fixed costs $480,000 $504,000 The variable costs of the cafeteria are allocated to operating departments on the basis of the number of employees in these departments. Data concerning last year are given below: Machining Assembly Budgeted number of employees 60 100 Actual number of employees 40 80 Percentage of peak-period requirements 40% 60% The level of budgeted fixed costs in the cafeteria is determined by the peak-period requirements.
Required:
A. Compute the dollar amount of variable and fixed cost that should have been allocated to each of the operating departments at the beginning of last year for planning purposes.