Answer the Following Questions Using the Information Below:
the Speedjet

question 118

Multiple Choice

Answer the following questions using the information below:
The Speedjet Aircraft 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 costs of operating the materials laboratory
for 100,000 to 200,000 technician hours per year:
$\begin{array}{lll}\text { Fixed costs per year }&\$8,000,000\\\text { Variable costs }&\$ 70 \text { per technician hour }\\\text { Budgeted long-run usage in hours per year: }\\\text { Large Plane Department } & 80,000 \text { technician hours } \\\text { Small Plane Department } & 70,000 \text { technician hours }\end{array}$ Budgeted amounts are used to calculate the allocation rates.
Actual usage for the year by the Large Plane Department was 70,000 technician hours and by the Small Plane Department was 65,000 technician hours.
-If a single-rate cost-allocation method is used,what amount of materials laboratory costs will be allocated to the Large Plane Department? Assume actual usage is used to allocate copying costs.

• A) $8,166,666.67
• B) $8,766,666.67
• C) $8,433,333.33
• D) $8,633,333.33

---

Definitions:

Genus

A classification in biological taxonomy that ranks above species and below family, grouping species that share common characteristics.

Concept

A general idea or understanding that is formulated in the mind.

Species

In biological classification, it refers to the basic unit of classification, defined as groups of organisms capable of interbreeding and producing fertile offspring.

College Course

A unit of teaching that typically covers a specific subject area in a higher education institution, often forming part of a larger program of study.