We Be Warehouse Fitness Equipment incurred $80,000 of common fixed costs and $120,000 of common variable costs. Data are provided below for the capacity allowed and the capacity used.

Department	Capacity Provided in Hours	Capacity Used in Hours
Barbell Department	500	400
Sauna Department	300	400

For both departments, common fixed costs are to be allocated on the basis of capacity provided and common variable costs are to be allocated on the basis of capacity used.

The fixed and variable costs allocated to the Barbell Department are:

		a) $30,000 and $50,000 respectively.
		b) $50,000 and $60,000, respectively.
		c) $30,000 and $75,000, respectively.
		d) $50,000 and $75,000, respectively.
		e) $30,000 and $60,000, respectively.

Answer rating: 100% (QA)

Solution Common fixed costs allocated on the basis of ... View the full answer