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

question 48

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 are the fixed cost per year and the variable cost per hour for the CD Department if the dual-rate method is used? Assume that the allocation bases are budgeted usage for fixed costs and actual usage for variable costs.

• A) $100,270 and $600
• B) $126,000 and $600
• C) $134,043 rounded and $89.36
• D) $134,043 rounded and $600
• E) $900,000 and $600

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Definitions:

Medical Supplies

Medical supplies encompass a wide range of products used in healthcare settings, including surgical instruments, diagnostic devices, and items used for patient care.

Administrative Expenses

Expenses that are not directly tied to a specific business activity but are necessary for the overall operation of a company; these may include salaries of administrative personnel, rent, and utilities.

Net Operating Income

A company's total income from operations, excluding expenses and taxes.

Facility Expenses

Costs related to the physical space where business operations occur, such as rent, utilities, and maintenance.