The Speedjet Aircraft Corporation Has a Central Materials Laboratory

question 35

Multiple Choice

The Speedjet Aircraft Corporation has a central materials laboratory. The laboratory has only two users, the Large Plane Department and the Small Plane Department. The following data apply to the coming budget year:

Budgeted amounts are used to calculate the allocation rates.
Actual usage for the year by the Large Plane Department was 70,000 technician hours and by the Small Plane Department was 90,000 technician hours. If a single-rate cost-allocation method is used, what is the allocation rate per hour used? (Round the final answer to the nearest dollar.)

• A) $120.50
• B) $101.60
• C) $158.75
• D) $77.12

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Definitions:

Comparative Bar Graph

Two bar graphs combined on one grid, to compare two different sets of comparable data.

Quarterly Revenues

The total income generated by a company during a three-month period from its business activities.

Circle Graph

A circular chart divided into sectors, each representing a proportion of the total; also known as a pie chart.

Sales Revenues

The total amount of money generated from the sale of goods or services before any expenses are subtracted.