Answer the Following Question(s)using the Information Below

question 151

Multiple Choice

Answer the following question(s) using the information below:
The Fancy Flier Airplane Corporation has a central materials laboratory.The laboratory has only two users, the Large Plane Department and the Small Plane Department.The following data apply to the coming budget year:
Budgeted amounts are used to calculate the allocation rates.Actual usage for the year by the Large Plane Department was 6,000 technician hours and by the Small Plane Department was 6,500 technician hours.
-If a dual-rate cost allocation method is used, what amount of materials laboratory costs will be budgeted for the Large Plane Department?

• A)$1,057,500
• B)$822,500
• C)$1,880,000
• D)$1,600,000
• E)$982,500

---

Definitions:

Vesting Period

The period of time before an employee gains unconditional ownership of certain benefits or assets, such as stock options or employer contributions to a retirement plan.

Option-pricing Model

A mathematical model used to estimate the value of options, taking into account the underlying asset's price, volatility, time until expiration, and other factors.

AASB 2

An accounting standard that specifies the financial reporting requirements for entities to reflect the effects of transactions involving share-based payment transactions.

Equity Instruments

Financial instruments that represent ownership in a company, such as stocks, giving holders a claim on the company's residual assets and earnings.