Use the Information Below to Answer the Following Question(s)

question 17

Multiple Choice

Use the information below to answer the following question(s) .We Be Warehouse Fitness Equipment incurred $80,000 of common fixed costs and $120,000 of common variable costs.Data are provided below for the capacity allowed and the capacity used. For both departments, common fixed costs are to be allocated on the basis of capacity available and common variable costs are to be allocated on the basis of capacity used.
-The fixed and variable costs allocated to the Sauna Department are

• A)$50,000 and $75,000, respectively.
• B)$50,000 and $60,000, respectively.
• C)$30,000 and $75,000, respectively.
• D)$30,000 and $50,000, respectively.
• E)$30,000 and $60,000 respectively.

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Definitions:

Repetitive Production

A method of production where the same products are manufactured over and over again in a continuous flow.

Noncustomized Products

Refers to goods that are produced in large quantities without specific modifications for individual customers.

Process Costing Systems

An accounting method used to allocate costs to units of product in processes that mass produce similar items, calculating the cost per unit.

Standardized Products

Goods or services that are uniform in quality and performance, produced in large quantities, and often interchangeable.