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 common fixed costs are to be allocated to Departments XX and YY on the basis of capacity provided and that common variable costs are to be allocated to Departments XX and YY 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

Question

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 common fixed costs are to be allocated to Departments XX and YY on the basis of capacity provided and that common variable costs are to be allocated to Departments XX and YY 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

Quizplus · Accepted Answer

The Answer of 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 common fixed costs are to be allocated to Departments XX and YY on the basis of capacity provided and that common variable costs are to be allocated to Departments XX and YY 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

A Company Incurred £120,000 of Common Fixed Costs and £180,000