Question

Service department cost of $120,000 fixed and $180,000 variable are to be assigned to Departments XX...

Service department cost of $120,000 fixed and $180,000 variable are to be assigned to Departments XX and YY with service hours as the cost driver. Plan service hours is 500 and 300 for XX and YY, respectively. What is plan fixed/variable cost assigned to Department XX?

Homework Answers

Answer #1

Fixed Cost Assigned to Department XX = $75,000

Variable Cost Assigned to Department XX = $112,500

Total Cost Assigned to Department XX = $187,500

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