1. If a dual-rate cost-allocation method is used, what amount of maintenance cost will be budgeted for each department?

2. If a dual-rate cost-allocation method is used, what amount of maintenance cost will be allocated to each department based on budgeted usage for fixed operating costs and actual usage for variable operating costs?

A customer has requested that Galaxy Corporation fill a special order for 2,000 units of product R5D7 for $25.00 a unit. Variable costs are incurred at the rate of $30 per maintenance-hour. The facility averages 40,000 maintenance-hours a year. Budgeted and actual hours per user for the year are as follows: Building and grounds Operating and emergency Patient care Administration Total Budgeted hours 10,000 8,000 21,000 1,000 40.000 Actual hours 12,000 8,000 22,000 1,200 43,200 Assume that budgeted maintenance-hours are used to calculate the allocation rates. A customer has requested that Galaxy Corporation fill a special order for 2,000 units of product R5D7 for $25.00 a unit. Variable costs are incurred at the rate of $30 per maintenance-hour. The facility averages 40,000 maintenance-hours a year. Budgeted and actual hours per user for the year are as follows: Building and grounds Operating and emergency Patient care Administration Total Budgeted hours 10,000 8,000 21,000 1,000 40.000 Actual hours 12,000 8,000 22,000 1,200 43,200 Assume that budgeted maintenance-hours are used to calculate the allocation rates