Answer the Following Question(s)using the Information Below

question 162

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 allocated to the Large Plane Department? Assume budgeted usage is used to allocate fixed materials laboratory costs and actual usage is used to allocate variable materials laboratory costs.

• A)$782,500
• B)$817,500
• C)$822,500
• D)$705,000
• E)$996,923

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Definitions:

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Referring to the school of psychology that focuses on observing and controlling behavior as the main source of psychological research and theory.

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The perspective that looks at past events and trends to understand how they influence the present and potentially the future.

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