Charley's Products allocates telephone expenses based on a variable rate of $1 per phone call.It allocates the fixed monthly charge equally over its budgeted usage.Able Division expected to make 300 telephone calls,but actually made 350.Baker Division expected to make 300 telephone calls,but actually made 250.Actual fixed costs for the month totaled $3,000.What are the amounts allocated to the two divisions using a dual rate of allocation?
A) Able Division = $2,259,Baker Division = $1,291
B) Able Division = $2,209,Baker Division = $1,391
C) Able Division = $1,850,Baker Division = $1,750
D) Able Division = $1,800,Baker Division = $1,800
Correct Answer:
Verified
Q3: What is the proper sequence of steps
Q4: Why do companies allocate common costs to
Q5: Why do companies allocate common costs to
Q6: The step method allocates costs of service
Q7: When are cost allocation concepts appropriate?
A)only as
Q9: Which of the following is a cost
Q10: What is the first step in allocating
Q11: How can a department manager's salary be
Q12: What is the second step in allocating
Q13: How do common costs arise?
A)From the joint
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents