The Speedjet Aircraft Corporation Has a Central Materials Laboratory

question 77

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 80,000 technician hours and by the Small Plane Department was 120,000 technician hours. If a dual-rate cost-allocation method is used, what amount of materials laboratory costs will be allocated to the Large Plane Department? Assume budgeted usage is used to allocate fixed materials laboratory costs and actual usage is used to allocate variable materials laboratory costs.

• A) $10,300,000
• B) $10,100,000
• C) $9,600,000
• D) $10,800,000

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Definitions:

Feldspar

A group of silicate minerals that are among the most abundant minerals in the Earth's crust, commonly found in igneous, metamorphic, and sedimentary rocks.

Calcite

A common naturally occurring calcium carbonate mineral, often found in sedimentary rocks, and the primary mineral that makes up limestone.

Chemical Elements

Substances that cannot be broken down into simpler substances by chemical means, and are defined by the number of protons in their atomic nuclei.

Reddish Streak

The color mark left by a mineral when it is dragged across an unglazed porcelain plate.