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

question 130

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 allocated cost to the two departments, respectively, if budgeted usage is the base for fixed costs and actual usage is the base for variable costs? (Use dual-rate method.) Assume that the Cassette and CD Departments used 1,750 and 200 hours, respectively.

• A) $1,050,000; $120,000
• B) $1,787,240; $204,256
• C) $1,815,957; $254,043
• D) $2,000,126; $294,112
• E) $1,787,240; $254,043