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

question 96

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 both fixed and variable costs are allocated 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