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

question 72

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
Fixed Variable

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

---

Definitions:

Online Shopping

The act of purchasing products or services over the internet, allowing consumers to buy goods from the comfort of their own home.

Personal Contact

Direct interaction between two or more people, typically used in marketing to build relationships with customers or clients.

Online Retailers

Businesses that sell products or services over the Internet to consumers, without having physical storefronts.

Dynamic Billboards

Outdoor advertising structures that leverage digital technology to display changing images or messages to capture viewer attention.