A Company Incurred $80,000 of Common Fixed Costs and $120,000

Multiple Choice

A company incurred $80,000 of common fixed costs and $120,000 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: Capacity Provided Capacity Used
Department in Hours in Hours
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
Fixed Variable

A) $40,000 $60,000
B) $50,000 $60,000
C) $40,000 $75,000
D) $50,000 $75,000