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 both fixed and variable costs are allocated 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
Correct Answer:
Verified
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