The Computer Department in a Large Company Provides Services to Many

Multiple Choice

The Computer Department in a large company provides services to many departments.The cost driver for costs in the Computer Department is the number of computer hours.When allocating variable costs of the Computer Department to a user department,which of the following formulas is used?

A) actual computer hours used × (total budgeted variable costs of Computer Department / total budgeted computer hours of Computer Department)
B) budgeted computer hours to be used × (total budgeted variable costs of Computer Department/ total budgeted computer hours of Computer Department)
C) actual computer hours used × (total actual variable costs of Computer Department/ total actual computer hours of Computer Department)
D) budgeted computer hours to be used × (total actual variable costs of Computer Department/ total budgeted computer hours of Computer Department)