Mlumination Corp operates one central plant that has two divisions, the Flashuight Division and the Night Light
Question:
Mlumination Corp operates one central plant that has two divisions, the Flashuight Division and the Night Light Division. The following data apply to the coming budget year:
Budgeted costs of operating the plant for to hours:
Fixed operating costs per year
Variable operating costs
Budgeted longrun usage per year:
Flashlight Division
Night Light Division
Practical capacity
$
$ per hour
hours
hours
hours
Assume that practical capacity is used to calculate the allocation rates.
Actual usage for the year by the Flashlight Division was hours and by the Night Light Division was hours. If a dualrate costallocation method is used, what amount of cost will be allocated to the Nigh Light Division? Assume budgeted usage is used to allocate fixed operating costs and actual usage is used to allocate variable operating costs.
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones