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

question 109

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 Barbell 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 $60,000, respectively.
• E)$30,000 and $50,000 respectively.

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Definitions:

Raw Materials Used

The total cost of all raw materials that are consumed in the production process during a specific period.

Production

The process of combining various material inputs and immaterial inputs (plans, know-how) to make something for consumption.

Raw Materials

Basic materials that are used in the production process to manufacture goods, often processed in multiple stages before becoming part of the final product.

Total Manufacturing Costs

The sum of all costs directly involved in the production of goods, including direct materials, direct labor, and manufacturing overhead.