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

question 61

Multiple Choice

Use the information below to answer the following question(s) .
Data Source Media manufactures cassettes and CDs. Management is attempting to set the budget for the coming year. Two divisions (Cassette and CD) of the company utilize one plant location. The following data have been prepared for review.

-What is the fixed cost per year and the variable cost per hour, respectively, for the Cassette Department using the dual-rate method, assuming that the allocation bases are capacity for fixed costs and actual usage for variable costs?

• A) $720,000 and $480
• B) $720,000 and $600
• C) $765,958 rounded and $480
• D) $765,958 rounded and $600
• E) $900,000 and $600

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Definitions:

Persistence

The quality of continuing steadily despite problems or difficulties.

Positive Attitude

A mental stance that focuses on the good and optimistic aspects of situations, fostering a hopeful outlook.

Critical Thinker

A person who systematically evaluates information or arguments by applying reasoned judgment to determine validity or solutions.

Creative Thinker

An individual who is capable of thinking in unique and innovative ways to solve problems or create new concepts.