The Fixed Costs of Operating the Maintenance Facility of General

question 81

Essay

The fixed costs of operating the maintenance facility of General Hospital are $4,500,000 annually. Variable costs are incurred at the rate of $30 per maintenance-hour. The facility averages 40,000 maintenance-hours a year. Budgeted and actual hours per user for 2017 are as follows:

Assume that budgeted maintenance-hours are used to calculate the allocation rates.
Required:
a.If a single-rate cost-allocation method is used, what amount of maintenance cost will be budgeted for each department?
b.If a single-rate cost-allocation method is used, what amount of maintenance cost will be allocated to each department based on actual usage?
c.If a dual-rate cost-allocation method is used, what amount of maintenance cost will be budgeted for each department?
d.If a dual-rate cost-allocation method is used, what amount of maintenance cost will be allocated to each department based on actual usage? Based on budgeted usage for fixed operating costs and actual usage for variable operating costs?

---

Definitions:

Consciousness

The quality or state of being aware of an external object or something within oneself, regarded as a defining aspect of the human experience.

EEG

A test that detects electrical activity in the brain using small, flat metal discs attached to the scalp.

Prefrontal Cortex

refers to the front part of the frontal lobe of the brain, which is involved in complex cognitive behavior, personality expression, decision making, and moderating social behavior.

Limbic System

A complex system of nerves and networks in the brain, involved in basic emotions (such as fear and pleasure) and drives (such as those for food and sex).