Answer the Following Questions Using the Information Below:
Illumination Corp

question 73

Multiple Choice

Answer the following questions using the information below:
Illumination Corp operates one central plant that has two divisions, the Flashlight Division and the Night Light Division. The following data apply to the coming budget year:
Budgeted costs of operating the plant for 2,000 to 3,000 hours:
$\begin{array}{lr}\text { Fixed operating costs per year } & \$ 500,000 \\\text { Variable operating costs } & \$ 800 \text { per hour } \\\text { Budgeted long-run usage per year: } & 2,000 \text { hours } \\\text { Flashlight Division } & 1000 \text { hours } \\\text { Night Light Division } & 4,000 \text { hours }\end{array}$ Assume that practical capacity is used to calculate the allocation rates.
Actual usage for the year by the Flashlight Division was 1,500 hours and by the Night Light Division was 800 hours.
-If a single-rate cost-allocation method is used,what amount of operating costs will be budgeted for the Flashlight Division?

• A) $1,850,000
• B) $1,560,000
• C) $1,740,000
• D) $1,950,000

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Definitions:

Employability

The quality of being suitable for paid work, often involving skills, knowledge, and attitudes valued by employers.

Career Plateau

The point in an individual's career where the likelihood of additional hierarchical promotion is very low.

Mentoring Relationship

A dynamic, reciprocal relationship in a work environment between an advanced career incumbent (mentor) and a beginner (protégé), aimed at fostering the development of the latter.

Cultivation Phase

A stage in relationships or projects where growth and development are emphasized and nurtured.