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klasskru [66]
2 years ago
12

The Technology department at Watkins Transit has a budgeted annual cost of $65,000. The department has a capacity to handle 250

work stations per year. Currently, purchasing, shipping, and administrative departments have 20, 45, and 135 work stations, respectively. If practical capacity is used to allocate costs, how much cost is allocated to shipping
Business
1 answer:
Mrrafil [7]2 years ago
3 0

Answer: $14,625

Explanation:

Based on the information given, if practical capacity is used to allocate cost, the cost that is allocated to shipping will be:

= Budgeted annual cost/200 × Number of shipping work stations

= 65000/200 × 45

= $14,625

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