Test 2 - CH 15 Flashcards
1
Q
Infinity Warehouse Fitness Equipment incurred $80,000 of common fixed costs and $120,000 of common variable costs. Data are provided below for the capacity allowed and the capacity used. For both departments, common fixed costs are to be allocated on the basis of capacity available and common variable costs are to be allocated on the basis of capacity used. The fixed and variable costs allocated to the Barbell Department are ________ respectively.
Capacity Available in Hours:
– Barbell // 500
– Sauna // 300
Capacity Used in Hours:
– Barbell // 400
– Sauna // 400
A. $50,000 and $75,000
B. $30,000 and $75,000
C. $30,000 and $50,000
D. $50,000 and $60,000
E. $30,000 and $60,000
A
D. $50,000 and $60,000
