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Find what is total cost per hour of use for the dvd division

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Reference no: EM132640188

ASM Media manufactures DVDs and CDs in separate divisions utilizing one plant location. The following data have been prepared for review.

Fixed operation costs       $450,000
Practical capacity           1,250 hours

Budgeted usage:

DVD Division                      1,000 hours
CD Division                          175 hours
Budgeted variable cost per hour  $600 per hour

Problem 1: What is the total cost per hour of use for the DVD Division assuming budgeted usage is the allocation base and a single-rate method is used?

Reference no: EM132640188

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