Calculate the unallocated amount of power department cost

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Reference no: EM13789103

The Power Department in Manufacture Inc. is the only service department. At the time the power plant was constructed, the two operating divisions, O1 and O2 estimated their demands at 60,000 units and 40,000 units respectively. The fixed costs of operating the power department are $1,000,000 annually. During the year, the actual consumption of power was 64,000 units by O1 and 56,000 units by O2. The budgeted variable costs for operating the power plant were $0.60 for the year and actual cost was $0.65 per unit.

Question: Calculate the unallocated amount of power department cost for the year

Reference no: EM13789103

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