The Michael Vamosi Corporation operates one central plant that has two divisions, the Lamp Division and...
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The Michael Vamosi Corporation operates one central plant that has two divisions, the Lamp Division and the Flashlight Division. The following data apply to the com Budgeted costs of operating the plant for 10,000 to 20,000 hours Fixed operating costs per year Variable operating costs 10 per hour $ 240,000 $ Practical capacity 20,000 hours per year Budgeted long-run usage per year Lamp Division 800 hours 12 months- 9,600 hours per year 1 Flashlight Division 450 hours x 12 months 5,400 hours per year 2 33 Assume that practical capacity is used to calculate the allocation rates. Further assume that actual usage of the Lamp Division was 700 hours and the Flashlight Division 14 15 Required: 16 a. If a single rate cost allocation method is used, what amount of operating costs will be budgeted for the Lamp Division each month? For the Flashlight Division each m 17 b. For the month of June, if a single-rate cost allocation method is used, what amount of cost will be allocated to the Lamp Division? To the Flashlight Division? Assume 18 c. If a dual rate cost allocation method is used, what amount of operating costs will be budgeted for the Lamp Division each month? For the Flashlight Division each mom 19 d. For the month of June, if a dual-rate cost allocation method is used, what amount of cost will be allocated to the Lamp Division? To the Flashlight Division? 20 21 22 26 on operates one central plant that has two divisions, the Lamp Division and the Flashlight Division. The following data apply to the coming budget year the plant for 10,000 to 20,000 hours $ 240,000 $ 10 per hour 20,000 hours per year per year 800 bours 12 months 450 hours 12 months 9,600 hours per year 5,400 hours per year cay is used to calculate the allocation rates. Further assume that actual usage of the Lamp Division was 700 hours and the Flashlight Division was 400 hours for the month of June ation method is used, what amount of operating costs will be budgeted for the Lamp Division each month? For the Flashlight Division each month? a single rate cost allocation method is used, what amount of cost will be allocated to the Lamp Division? To the Flashlight Division? Assume actual usage is used to allocate operating costs tion method is used, what amount of operating costs will be budgeted for the Lamp Division each month? For the Flashlight Division each month? if a dual rate cost allocation method is used, what amount of cost will be allocated to the Lamp Division? To the Flashlight Division? The Michael Vamosi Corporation operates one central plant that has two divisions, the Lamp Division and the Flashlight Division. The following data apply to the com Budgeted costs of operating the plant for 10,000 to 20,000 hours Fixed operating costs per year Variable operating costs 10 per hour $ 240,000 $ Practical capacity 20,000 hours per year Budgeted long-run usage per year Lamp Division 800 hours 12 months- 9,600 hours per year 1 Flashlight Division 450 hours x 12 months 5,400 hours per year 2 33 Assume that practical capacity is used to calculate the allocation rates. Further assume that actual usage of the Lamp Division was 700 hours and the Flashlight Division 14 15 Required: 16 a. If a single rate cost allocation method is used, what amount of operating costs will be budgeted for the Lamp Division each month? For the Flashlight Division each m 17 b. For the month of June, if a single-rate cost allocation method is used, what amount of cost will be allocated to the Lamp Division? To the Flashlight Division? Assume 18 c. If a dual rate cost allocation method is used, what amount of operating costs will be budgeted for the Lamp Division each month? For the Flashlight Division each mom 19 d. For the month of June, if a dual-rate cost allocation method is used, what amount of cost will be allocated to the Lamp Division? To the Flashlight Division? 20 21 22 26 on operates one central plant that has two divisions, the Lamp Division and the Flashlight Division. The following data apply to the coming budget year the plant for 10,000 to 20,000 hours $ 240,000 $ 10 per hour 20,000 hours per year per year 800 bours 12 months 450 hours 12 months 9,600 hours per year 5,400 hours per year cay is used to calculate the allocation rates. Further assume that actual usage of the Lamp Division was 700 hours and the Flashlight Division was 400 hours for the month of June ation method is used, what amount of operating costs will be budgeted for the Lamp Division each month? For the Flashlight Division each month? a single rate cost allocation method is used, what amount of cost will be allocated to the Lamp Division? To the Flashlight Division? Assume actual usage is used to allocate operating costs tion method is used, what amount of operating costs will be budgeted for the Lamp Division each month? For the Flashlight Division each month? if a dual rate cost allocation method is used, what amount of cost will be allocated to the Lamp Division? To the Flashlight Division?
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