If a support department's costs were budgeted to be $75,000 and actual costs incurred by the support department were $70,000, the total amount of the support department's costs that should be allocated to other departments is
A)$145,000.
B)$75,000.
C)$70,000.
D)$5,000.

Question

Quizplus · Accepted Answer

The total amount of the support department's costs that should be allocated to other departments is based on the budgeted costs, not the actual costs incurred. Therefore, the correct amount to be allocated is the budgeted $75,000.

If a Support Department's Costs Were Budgeted to Be $75,000