Reference no: EM132655868

We Be Warehouse Fitness Equipment incurred 5130.000 of common fixed costs and 5120000 of common variable costs. Data are provided below for the capacity allowed and the capacity used.

Department                                     Capacity                   Capacity

                                            Available in Hours        used in hours

Barbell Department                          500                             400
Sauna Department                          300                                 400

For both departments, common faced costs are to be allocated on the basis of capacity available and common variable costs are to be allocated on the basis of capacity used.

Problem 1: Assuming that fixed and variable costs are allocated according to capacity used then the fixed and variable costs allocated to the Barbell Department will be

A $60.000 and 540000. respectively.
B $40.000 and 560.000, respectively.
C $30.000 and $76.000 respectively.
D $30.000 and $50,000. respectively.
E $30.000 and $60.000. respectively.