The Set 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 comingbudget yearBudgeted costs of operating the materials laboratory for 100.000 to200 000 technician hours per yearFixed costs per yearVariable costsBudgeted long-run usage in hours per yearLarge Plane DepartmentSmail Plane Department$8,000,000OA $167B: $95OC. $136OD $117$73 per technician hour80.000 technician hours120,000 technician hoursBudgeted amounts are used to calculate the allocation ratesActual usage for the year by the Large Plane Department was 60,000 technician hours and by the Small Plane Department was 80,000 technican hours If a single-rate cost-allocation method is used what isthe allocation rate per hour used? (Round the final answer to the nearest dollar)

It is the base rate using which the costs are allocated to a particular product or job. The…

The Set Aircratt 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 Fixed costs per year Variable costs $8,000,000 OA $167 B: $95 OC. $136 OD. 5117 $73 per technician hour Budgeled long-run usage in hours per year Large Plane Department Smail Plane Department Budgeted amounts are used to calculate the allocation rates Actual usage for the year by the Large Plane Department was 60,000 technician hours and by the Small Plane Department was 80,000 technician hours. If a single-rate cost-allocation method is used what is the allocation rate per hour used? (Round the final answer to the nearest dollar) 80.000 technician hours 120.000 technician hours

The Set Aircratt 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 Fixed costs per year Variable costs $8,000,000 OA $167 B: $95 OC. $136 OD. 5117 $73 per technician hour Budgeled long-run usage in hours per year Large Plane Department Smail Plane Department Budgeted amounts are used to calculate the allocation rates Actual usage for the year by the Large Plane Department was 60,000 technician hours and by the Small Plane Department was 80,000 technician hours. If a single-rate cost-allocation method is used what is the allocation rate per hour used? (Round the final answer to the nearest dollar) 80.000 technician hours 120.000 technician hours

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...

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