Answer the Following Questions Using the Information Below

question 128

Multiple Choice

Answer the following questions using the information below:
The Laserlight Corporation operates one central plant that has two divisions, the Flashlight Division and the Night Light Division. The following data apply to the coming budget year:
Budgeted costs of operating the plant for 2,000 to 3,000 hours:
Budgeted long-run usage per year:
Assume that practical capacity is used to calculate the allocation rates.
Actual usage for the year by the Flashlight Division was 1,400 hours and by the Night Light Division was 600 hours.
-If a single-rate cost-allocation method is used, what amount of cost will be allocated to the Flashlight Division? Assume actual usage is used to allocate operating costs.

• A)$1,140,000
• B)$1,200,000
• C)$1,500,000
• D)$1,050,000

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Definitions:

Transparent

A property of a material that allows light to pass through so that objects behind can be distinctly seen.

Extraocular Muscles

The muscles surrounding the eyeball that control its movements.

Myopathy

A disease or disorder affecting muscle fibers, leading to muscle weakness, cramps, stiffness, and in some cases, muscle breakdown.

Atrophy

A decrease in size or wasting away of a body part or tissue due to disease, injury, or lack of use.