A Company Incurred $40,000 of Common Fixed Costs and $60,000

Multiple Choice

A company incurred $40,000 of common fixed costs and $60,000 of common variable costs.These costs are to be allocated to Departments A and B.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 A are

A) $25,000 $37,500
B) $25,000 $30,000
C) $20,000 $37,500
D) $20,000 $30,000