A Company Incurred £120,000 of Common Fixed Costs and £180,000

question 56

Multiple Choice

A company incurred £120,000 of common fixed costs and £180,000 of common variable costs. These costs are to be allocated to Departments XX and YY. Data on capacity provided and capacity used are as follows: Assume that common fixed costs are to be allocated to Departments XX and YY on the basis of capacity provided and that common variable costs are to be allocated to Departments XX and YY on the basis of capacity used. The fixed and variable costs allocated to Department XX are

• A) £75,000 £112,500
• B) £75,000 £90,000
• C) £60,000 £112,500
• D) £60,000 £90,000

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Definitions:

Personality Structure

The organized pattern of behaviors and attitudes that makes a person distinctive, encompassing traits, temperament, and character.

Freud

Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Ego

A component of Sigmund Freud's psychoanalytic theory, representing the rational part of the psyche that mediates between the desires of the id and the morals of the superego.

Latin

An ancient Italic language of the Roman Empire, used historically in scholarship and as a liturgical language of the Catholic Church.