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: Assume that both fixed and variable costs are allocated on the basis of capacity used. The fixed and variable costs allocated to Department XX are

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