A Company Incurred $40,000 of Common Fixed Costs and $60,000

question 86

Short Answer

A company incurred $40,000 of common fixed costs and $60,000 of common variable costs.These costs are to be allocated to Departments A and B.Data on capacity provided and capacity used are as follows: $$\begin{array} { c c c } & \text { Capacity Provided } & \text { Capacity Used } \\ \text { Department }& \text { in Hours } & \text { in Hours } \\\text { A }& 400 & 320 \\\text { B } & 240 & 320\end{array}$$ Assume that both fixed and variable costs are allocated on the basis of capacity used.What are the fixed and variable costs allocated to Department A?
$\begin{array}{lll}&&\text { Fixed}&\text { Variable }\end{array}$
A) $\begin{array}{lll}& \$ 20,000 & \$ 30,000 \\\end{array}$
B) $\begin{array}{lll} & \$ 20,000 & \$ 37,500 \\\end{array}$
C) $\begin{array}{lll} & \$ 25,000 & \$ 30,000 \\\end{array}$
D) $\begin{array}{lll}& \$ 25,000 & \$ 37,500\end{array}$

Comprehend the components and interpretation of the double forecasting model.

Grasp the principles and use of the seasonal additive model in forecasting.

Understand the Delphi method's process and its application in forecasting.

Comprehend the methodology and application of the simple moving average method in forecasting.

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Definitions:

Revocation

The official cancellation or withdrawal of an offer, license, right, or privilege.

Mailbox Rule

A legal principle stating that an offer is considered accepted once the acceptance is dispatched by the offeree, not when received by the offeror.

Mailbox Rule

A legal principle stating that an offer is considered accepted once the acceptance is dispatched, not when it is received.

Effective Upon Receipt

A condition indicating that a document, notification, or agreement becomes legally binding as soon as it is received by the intended party.