The Alex Miller Corporation Operates One Central Plant That Has

question 49

Essay

The Alex Miller Corporation 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 the operating the plant
$\begin{array}{lr}\text { for } 10,000 \text { to } 20,000 \text { hours: }\\\text { Fixed operating costs per year } & \$ 240,000 \\\text { Variable operating costs } & \$ 10 \text { per hour } \\\text { Practical capacity } & 20,000 \text { hours per year } \\\text { Budgeted long-run usage per year: } \\\text { Lamp Division } \quad 800 \text { hours } \times 12 \text { months }= & 9,600 \text { hours per year } \\\text { Flashlight Division } \quad 450 \text { hours } \times 12 \text { months }= & 5,400 \text { hours per year }\end{array}$ Assume that practical capacity is used to calculate the allocation rates.Further assume that actual usage of the Lamp Division was 700 hours and the Flashlight Division was 400 hours for the month of June.
Required:
a.If a single-rate cost-allocation method is used,what amount of operating costs will be budgeted for the Lamp Division each month? For the Flashlight Division each month?
b.For the month of June,if a single-rate cost-allocation method is used,what amount of cost will be allocated to the Lamp Division? To the Flashlight Division? Assume actual usage is used to allocate operating costs.
c.If a dual-rate cost-allocation method is used,what amount of operating costs will be budgeted for the Lamp Division each month? For the Flashlight Division each month?
d.For the month of June,if a dual-rate cost-allocation method is used,what amount of cost will be allocated to the Lamp Division? To the Flashlight Division? Assume budgeted usage is used to allocate fixed operating costs and actual usage is used to allocate variable operating costs.

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Definitions:

Anatomical Directions

Terms used to describe the locations and relationships of structures in the body relative to each other, such as anterior, posterior, superior, and inferior.

Cell Division

The process by which a parent cell divides into two or more daughter cells, essential for growth and repair.

Mitosis

A type of cell division that results in two daughter cells each having the same number and kind of chromosomes as the parent nucleus.

Meiosis

A type of cell division in which each new cell contains only one member of each chromosome pair.