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 fixed costs of the Computer Department to a user department such as Department A,which of the following formulas is used?

A) budgeted fixed cost × (budgeted hours to be used by Department A/total available capacity hours of Computer Department)
B) budgeted fixed cost × (actual hours used by Department A/total available capacity hours of Computer Department)
C) actual fixed cost × (budgeted hours to be used by Department A/total available capacity hours of Computer Department)
D) actual fixed cost × (actual hours used by Department A/total available capacity hours of Computer Department)