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

question 143

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.
-Assuming that fixed and variable costs are allocated according to capacity used then the fixed and variable costs allocated to the Barbell Department will be

• A)$30,000 and $50,000, respectively.
• B)$30,000 and $60,000, respectively.
• C)$30,000 and $75,000 respectively.
• D)$40,000 and $60,000, respectively.
• E)$60,000 and $40,000, respectively.

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Definitions:

Election of Remedies

The election of remedies is a legal principle that requires a wronged party to choose a single legal remedy among several available, thereby preventing multiple recoveries for the same injury.

Specific Performance

A legal remedy requiring a party to execute a contract according to the precise terms agreed on, rather than paying damages.

Restitution

A legal principle that requires a party to restore the other party to their original position prior to a loss or injury, or to compensate for the loss.

Injunction

A legal order that requires an individual or entity to do or to cease doing a specific action.