Use the information below to answer the following question(s).General Media manufactures cassettes and CDs in separate divisions utilizing one plant location.The following data have been prepared for review.
-What are the fixed cost per year and the variable cost per hour for the General Media CD Division if the dual-rate method is used? Assume that the allocation bases are budgeted usage for fixed costs and for variable costs.
A)$100,270 and $480
B)$126,000 and $400
C)$134,043 rounded and $480
D)$134,043 rounded and $400
E)$900,000 and $400

Question

Use the information below to answer the following question(s).General Media manufactures cassettes and CDs in separate divisions utilizing one plant location.The following data have been prepared for review. 
-What are the fixed cost per year and the variable cost per hour for the General Media CD Division if the dual-rate method is used? Assume that the allocation bases are budgeted usage for fixed costs and for variable costs.
A)$100,270 and $480 
B)$126,000 and $400 
C)$134,043 rounded and $480 
D)$134,043 rounded and $400 
E)$900,000 and $400

Quizplus · Accepted Answer

The dual-rate method separates fixed and variable costs. Fixed costs are allocated based on budgeted usage, and variable costs are allocated based on actual usage. The fixed cost per year is $134,043 rounded, and the variable cost per hour is $400.

Use the Information Below to Answer the Following Question(s)