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StormLrd StormLrd
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5 years ago
Assuming that that fixed and variable costs are allocated according to capacity used then the fixed and variable costs allocated to the Sauna Department will be
A) $30,000 and $50,000, respectively.
B) $30,000 and $60,000, respectively.
C) $30,000 and $75,000 respectively.
D) $40,000 and $60,000, respectively.
E) $60,000 and $40,000, respectively.
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
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pachopacho
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More solutions for this book are available here
D
Explanation:  D) Sauna: (400/800) × $80,000 = $40,000 fixed cost
(400/800) × $120,000 = $60,000 variable cost
1
-Michigan State University

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hpascoe
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Correct Slight Smile TY
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