Answer the Following Question(s)using the Information Below

question 27

Multiple Choice

Answer the following question(s) using the information below:
The Fancy Flier Airplane 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 6,000 technician hours and by the Small Plane Department was 6,500 technician hours.
-If a dual-rate cost allocation method is used, what amount of materials laboratory costs will be allocated to the Small Plane Department? Assume budgeted usage is used to allocate materials laboratory costs and actual usage is used to allocate variable materials laboratory costs.

• A)$822,500
• B)$782,500
• C)$817,500
• D)$763,750
• E)$832,000

---

Definitions:

Fats

Molecules composed of triglycerides that are solid at room temperature, commonly found in animals and some plants, and serve as a major energy source.

Oils

Organic substances that are liquid at room temperature and are insoluble in water but soluble in organic solvents.

Fatty Acid Structures

The molecular arrangement of fatty acids, which typically consist of long hydrocarbon chains with a terminal carboxylic acid group; can be saturated or unsaturated.

Acid Base Hydrolysis

A reaction where water and an acid or base catalyze the breakdown of a molecule, often leading to the cleavage of chemical bonds.