The Speedjet Aircraft Corporation Has a Central Materials Laboratory

question 45

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 dual-rate cost-allocation method is used, what amount of materials laboratory costs will be budgeted for the Large Plane Department?

• A) $9,846,000
• B) $9,012,500
• C) $7,658,000
• D) $11,587,500

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Definitions:

Masculine Orientation

A societal tendency to value traits traditionally associated with masculinity, such as assertiveness and competitiveness.

Biocolonialism

The practice of exploiting biological resources, often in less developed countries, without fair compensation or benefits to the local populations, raising ethical and economic concerns.

Biopiracy

The practice of commercially exploiting naturally occurring biochemical or genetic material, especially that originating in developing countries, without fair compensation to the indigenous people or nations.

Ecological Modernization

A concept in environmental sociology that suggests industrialized societies can reduce environmental damage through technological innovation and regulatory reform.