SECTION 2: Multiple Choice (60 marks) Circle only one choice. Use the information below to answer the following question(s) General Media manufactures cassettes and CDs in separate divisions utilizing or plant location. The following data have been prepared for review one Fixed operation costs Practical capacity Budgeted usage: Cassette Division CD Division vo0,000 2,500 hours 2000 hours 350 hours $400 per hour Budgeted variable cost per hour 1. What is the fixed cost per year and the variable cost per hour, respectively, for the General Media Cassette Division using the dual-rate method, assuming that the allocation bases are capacity for fixed costs and budgeted capacity for variable costs? A) $720,000 and $360 B) $720,000 and $400 C) $765,958 rounded and $400 D) $765,958 rounded and $360 E) $900,000 and $400 2. What are the fixed cost per year and the variable cost per hour for the General Media CD Division if the dual-rate method is used? Assume that the allocation bases are budgeted usage for fixed costs and for variable costs. A) $100,270 and $480 B) $126,000 and $400 C) $134,043 rounded and $480 D) $134,043 rounded and $400 E) $900,000 and $400 3. What is the allocated cost to the two General Media divisions, respectively, if the single rate is $1,0007 Assume that the Cassette and CD Divisions used 1,750 and 200 hours, respectively A) $807,692 rounded and $92,308 rounded B) $900,000 and $200,000 C) $1,750,000 and $200,000 D) $2,800,000 and $320,000 E) $900,000 and $320,000 2