A Company Incurred $120,000 of Common Fixed Costs and $180,000

Multiple Choice

A company incurred $120,000 of common fixed costs and $180,000 of common variable costs.These costs are to be allocated to Departments XX and YY.Data on capacity provided and capacity used are as follows: $$\begin{array} { c c c } & \text { Capacity Pravided } & \text { Capacity Used } \\\text { Department }& \text { in Hours } & \text { in Hours } \\ \text { XX } & 500 & 400\\\text { YY }&300&400\end{array}$$
Assume that common fixed costs are to be allocated to Departments XX and YY on the basis of capacity provided and that common variable costs are to be allocated to Departments XX and YY on the basis of capacity used.What are the fixed and variable costs allocated to Department XX?
$$\text { Fixed \quad\quad\quad Variable }$$

A) $60,000 $90,000
B) $60,000 $112,500
C) $75,000 $90,000
D) $75,000 $112,500