FIGURE 7-5
Stronghold, Inc., operates a brochure business at two different locations. Stronghold, Inc., has one support department that is responsible for cleaning, service, and maintenance of its printing equipment. The costs of the support department are allocated to each brochure center on the basis of total brochures made.
During the first month, the costs of the support department were expected to be $400,000. Of this amount, $120,000 is considered a fixed cost. During the month, the support department incurred actual variable costs of $256,000 and actual fixed costs of $144,000.
Normal and actual activity (brochures made) are as follows:

-Refer to Figure 7-5.For purposes of performance evaluation, fixed costs allocated to Brochure Center 1 are

Question

FIGURE 7-5
Stronghold, Inc., operates a brochure business at two different locations. Stronghold, Inc., has one support department that is responsible for cleaning, service, and maintenance of its printing equipment. The costs of the support department are allocated to each brochure center on the basis of total brochures made.
During the first month, the costs of the support department were expected to be $400,000. Of this amount, $120,000 is considered a fixed cost. During the month, the support department incurred actual variable costs of $256,000 and actual fixed costs of $144,000.
Normal and actual activity (brochures made) are as follows:
 
-Refer to Figure 7-5.For purposes of performance evaluation, fixed costs allocated to Brochure Center 1 are

Quizplus · Accepted Answer

The Answer of FIGURE 7-5
Stronghold, Inc., operates a brochure business at two different locations. Stronghold, Inc., has one support department that is responsible for cleaning, service, and maintenance of its printing equipment. The costs of the support department are allocated to each brochure center on the basis of total brochures made.
During the first month, the costs of the support department were expected to be $400,000. Of this amount, $120,000 is considered a fixed cost. During the month, the support department incurred actual variable costs of $256,000 and actual fixed costs of $144,000.
Normal and actual activity (brochures made) are as follows:
 
-Refer to Figure 7-5.For purposes of performance evaluation, fixed costs allocated to Brochure Center 1 are

FIGURE 7-5 Stronghold, Inc., Operates a Brochure Business at Two Different Locations