Aquamarine company incurred $20,000 of common fixed costs and $80,000 of common variable costs. These costs...

 

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Aquamarine company incurred $20,000 of common fixed costs and $80,000 of common variable costs. These costs are to be allocated to its two departments: Department A and Department B. Data on capacity provided and capacity used by the two departments follows: Department A B Capacity Provided Capacity Used in Hours in Hours 600 400 550 450 Common fixed costs are allocated to Departments A and B on the basis of capacity provided, and common variable costs are allocated to Departments A and B on the basis of capacity used. The fixed and variable costs allocated to Department A are: Aquamarine company incurred $20,000 of common fixed costs and $80,000 of common variable costs. These costs are to be allocated to its two departments: Department A and Department B. Data on capacity provided and capacity used by the two departments follows: Department A B Capacity Provided Capacity Used in Hours in Hours 600 400 550 450 Common fixed costs are allocated to Departments A and B on the basis of capacity provided, and common variable costs are allocated to Departments A and B on the basis of capacity used. The fixed and variable costs allocated to Department A are:

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Answer To allocate the fixed and variable costs to Department A we can use the following steps Step ... View the full answer