Robert Company\'s power plant provides electricity to two producing departments.

Question

Robert Company's power plant provides electricity to two producing departments. The annual budget for
the power plant shows the following:
Budgeted fixed costs $500,000
Budgeted variable costs per kilowatt hour $1
Actual annual costs incurred by the power plant were:
Actual fixed costs $215,000
Actual variable costs $350,000
Additional annual data follows:
Producing Department 1 Producing Department 2
Capacity available- (Department 1 = 250,000 kilowatt hours) (Department 2= 150,000 kilowatt hours)
Capacity used- (Department 1 = 270,000 kilowatt hours) (Department 2 = 165,000 kilowatt hours)
Required:
A) Compute the amount of fixed costs allocated to each producing department.
B) Compute the amount of variable costs allocated to each producing department.

Explanation / Answer

ok,then this is what i make out of it

FC=500000+215000=715000

TVC=350000+270000*1+165000*1=785000

please rate my answer

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.