The Cost of Operating the Quality Control Department of Ankeny

question 123

Essay

The cost of operating the Quality Control Department of Ankeny Manufacturing includes $650,000 of fixed costs and $550,000 of variable costs. The department normally budgets 20,000 inspection hours a year. Two departments, Fabrication and Assembly, receive quality control checks. Fabrication is budgeted at 1,000 hours a month, while Assembly is budgeted the remainder. In August, Fabrication used 1,200 inspection hours and Assembly used 900 hours.
How much did each department receive in quality control costs, assuming a single rate is used based on budgeted hours?

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Definitions:

Bright Light

Refers to intense illumination that can influence mood, circadian rhythms, and visual processes.

Circadian Rhythm

An internal biological clock regulating the sleep-wake cycle and other physiological processes in a roughly 24-hour cycle.

Weekends

The part of the week traditionally reserved for rest and leisure activities, in many cultures spanning Saturday and Sunday.

Staying Up

The act of remaining awake, especially longer than usual or during the night.