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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
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 250,000 kilowatt hours 150,000 kilowatt hours
Capacity used 270,000 kilowatt hours 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.
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