Calculate the dollar amount of variable and fixed cost

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Reference no: EM1376192

Klingon Company operates a free cafeteria for benefit of its employees. Budgeted and actual costs in cafeteria for last year are provided below:

Budgeted Actual
Variable costs $200,000 $168,000
Fixed costs $480,000 $504,000

The variable costs of cafeteria are allocated to operating departments on basis of the number of employees in these departments. Data concerning last year are provided below:
Machining Assembly
Budgeted number of employees 60 100
Percentage of peak-period requirements 40% 60%
Actual number of employees 40 80

The level of budgeted fixed costs in the cafeteria is evaluated by the peak-period requirements.

Required:

A. Calculate the dollar amount of variable and fixed cost that should have been allocated to each of operating departments at the starting of last year for planning purposes.

Reference no: EM1376192

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