Answer the Following Questions Using the Information Below

question 78

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 operating costs will be budgeted for the Flashlight Division?

• A)$1,500,000
• B)$1,560,000
• C)$1,140,000
• D)$1,410,000

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Definitions:

Skill

The ability acquired through practice, training, or experience to do something well.

Flexibility

The quality of being able to bend easily without breaking, often referring to the body's ability to move through its complete range of motion without injury.

Employee

An individual who is hired to provide services to a company on a regular basis in exchange for compensation and who does not provide these services as part of an independent business.

Brain Functioning

The processes and activities by which the brain interprets, stores, and responds to information received from the environment.