Tall Plane Department. The following data apply to the coming budget year: Budgeted costs of operating the materials laboratory for 150,000 to 250,000 technician hours per year: Fixed costs per year $8,600,000 Variable costs $75 per technician hour Budgeted long-run usage in hours per year: Large Plane Department 90,000 technician hours Small Plane Department 160,000 technician hours Budgeted amounts are used to calculate the allocation rates. Actual usage for the year by the Large Plane Department was 70,000 technician hours and by the Small Plane Department was 90,000 technician hours. What amount of materials laboratory costs will be budgeted for the Large Plane Department? Select one:

a. $9,846,000 

b. $9,012,500

c. $7,658,000 

d. $11,587,500

Answer rating: 100% (QA)

Answer is option C c 7658000 The allociation is done on the basis of a single... View the full answer