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Spartans Inc. has three operating departments that receive support from Quality Control (Support). Below is the number of inspections department plans to use (Expected Usage) and its actual usage for the month. Dept A Dept B Dept C Expected Usage 90 180 150 Actual Usage 125 150 145 Quality Control can provide up to 450 inspections each month. Estimated its support costs are as follows: Fixed Costs $48,000 Variable Costs $22 per inspection Spartans Inc. estimates costs based on Practical Capacity. For the single-rate method costs are allocated based on actual usage. For the dual-rate method variable costs are allocated based on actual usage and fixed costs are allocated based on expected usage. If Spartans Inc. uses a Dual Rate based on Practical Capacity, how much support costs will be unallocated? 3,858.6

Spartans Inc. has three operating departments that receive support from Quality Control (Support). Below is the number of inspections department plans to use (Expected Usage) and its actual usage for the month. Dept A Dept B Dept C Expected Usage 90 180 150 Actual Usage 125 150 145 Quality Control can provide up to 450 inspections each month. Estimated its support costs are as follows: Fixed Costs $48,000 Variable Costs $22 per inspection Spartans Inc. estimates costs based on Practical Capacity. For the single-rate method costs are allocated based on actual usage. For the dual-rate method variable costs are allocated based on actual usage and fixed costs are allocated based on expected usage. If Spartans Inc. uses a Dual Rate based on Practical Capacity, how much support costs will be unallocated? 3,858.6

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter14: Quality And Environmental Cost Management
Section: Chapter Questions
Problem 4CE: Nabors Company had actual quality costs for the year ended June 30, 20x5, as given below. At the...
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Spartans Inc. has three operating departments that receive support from Quality Control (Support). Below is the number of inspections department plans to use (Expected Usage) and its actual usage for the month. Dept A Dept B Dept C Expected Usage 90 180 150 Actual Usage 125 150 145 Quality Control can provide up to 450 inspections each month. Estimated its support costs are as follows: Fixed Costs $48,000 Variable Costs $22 per inspection Spartans Inc. estimates costs based on Practical Capacity. For the single-rate method costs are allocated based on actual usage. For the dual-rate method variable costs are allocated based on actual usage and fixed costs are allocated based on expected usage. If Spartans Inc. uses a Dual Rate based on Practical Capacity, how much support costs will be unallocated? 3,858.6
Transcribed Image Text:Spartans Inc. has three operating departments that receive support from Quality Control (Support). Below is the number of inspections department plans to use (Expected Usage) and its actual usage for the month. Dept A Dept B Dept C Expected Usage 90 180 150 Actual Usage 125 150 145 Quality Control can provide up to 450 inspections each month. Estimated its support costs are as follows: Fixed Costs $48,000 Variable Costs $22 per inspection Spartans Inc. estimates costs based on Practical Capacity. For the single-rate method costs are allocated based on actual usage. For the dual-rate method variable costs are allocated based on actual usage and fixed costs are allocated based on expected usage. If Spartans Inc. uses a Dual Rate based on Practical Capacity, how much support costs will be unallocated? 3,858.6
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