Essay
The fixed costs of operating the maintenance facility of General Hospital are $4,500,000 annually. Variable costs are incurred at the rate of $30 per maintenance-hour. The facility averages 40,000 maintenance-hours a year. Budgeted and actual hours per user for 2017 are as follows:
Assume that budgeted maintenance-hours are used to calculate the allocation rates.
Required:
a.If a single-rate cost-allocation method is used, what amount of maintenance cost will be budgeted for each department?
b.If a single-rate cost-allocation method is used, what amount of maintenance cost will be allocated to each department based on actual usage?
c.If a dual-rate cost-allocation method is used, what amount of maintenance cost will be budgeted for each department?
d.If a dual-rate cost-allocation method is used, what amount of maintenance cost will be allocated to each department based on actual usage? Based on budgeted usage for fixed operating costs and actual usage for variable operating costs?
Correct Answer:
Verified
Correct Answer:
Verified
Q76: Which of the following would be considered
Q77: The Speedjet Aircraft Corporation has a central
Q78: The method that allocates costs in each
Q79: Electro Corp sells a refrigerator and a
Q80: The stand-alone cost allocation method ranks the
Q82: One version of the reciprocal method of
Q83: Which of the following is a disadvantage
Q84: Which of the following is one of
Q85: The method that allocates each department's budgeted
Q86: When actual cost-allocation rates are used, managers