Answer the following questions using the information below:
The Laserlight Corporation operates one central plant that has two divisions, the Flashlight Division and the Night Light Division. The following data apply to the coming budget year:
Budgeted costs of operating the plant for 2,000 to 3,000 hours:
Budgeted long-run usage per year:
Assume that practical capacity is used to calculate the allocation rates.
Actual usage for the year by the Flashlight Division was 1,400 hours and by the Night Light Division was 600 hours.
-If a dual-rate cost-allocation method is used, what amount of cost will be allocated to the Night Light Division? Assume budgeted usage is used to allocate fixed operating costs and actual usage is used to allocate variable operating costs.
A)$375,000
B)$435,000
C)$390,000
D)$450,000

Question

Answer the following questions using the information below:
The Laserlight Corporation operates one central plant that has two divisions, the Flashlight Division and the Night Light Division. The following data apply to the coming budget year:
Budgeted costs of operating the plant for 2,000 to 3,000 hours:
  Budgeted long-run usage per year:
  Assume that practical capacity is used to calculate the allocation rates.
Actual usage for the year by the Flashlight Division was 1,400 hours and by the Night Light Division was 600 hours.
-If a dual-rate cost-allocation method is used, what amount of cost will be allocated to the Night Light Division? Assume budgeted usage is used to allocate fixed operating costs and actual usage is used to allocate variable operating costs.
A)$375,000 
B)$435,000 
C)$390,000 
D)$450,000

Quizplus · Accepted Answer

The Answer of Answer the following questions using the information below:
The Laserlight Corporation operates one central plant that has two divisions, the Flashlight Division and the Night Light Division. The following data apply to the coming budget year:
Budgeted costs of operating the plant for 2,000 to 3,000 hours:
  Budgeted long-run usage per year:
  Assume that practical capacity is used to calculate the allocation rates.
Actual usage for the year by the Flashlight Division was 1,400 hours and by the Night Light Division was 600 hours.
-If a dual-rate cost-allocation method is used, what amount of cost will be allocated to the Night Light Division? Assume budgeted usage is used to allocate fixed operating costs and actual usage is used to allocate variable operating costs.
A)$375,000 
B)$435,000 
C)$390,000 
D)$450,000

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