The Computer Department in a Large Company Provides Services to Many

question 42

Multiple Choice

The Computer Department in a large company provides services to many departments.The cost driver for costs in the Computer Department is the number of computer hours.When allocating variable costs of the Computer Department to a user department,which of the following formulas is used?

• A) actual computer hours used × (total budgeted variable costs of Computer Department / total budgeted computer hours of Computer Department)
• B) budgeted computer hours to be used × (total budgeted variable costs of Computer Department/ total budgeted computer hours of Computer Department)
• C) actual computer hours used × (total actual variable costs of Computer Department/ total actual computer hours of Computer Department)
• D) budgeted computer hours to be used × (total actual variable costs of Computer Department/ total budgeted computer hours of Computer Department)

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