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The Hudson Block Company has a trucking department that delivers stones to two plants. The budgeted costs for the trucking department are $340,000 per year in fixed costs and $0.30 per ton variable cost. Last year, 70,000 tons of crushed stone were budgeted to be delivered to the West Plant and 100,000 tons of crushed stone to the East Plant. During the year, the trucking department actually delivered 75,000 tons of crushed stone to the West Plant and 90,000 tons to the East Plant. Its actual costs for the year were $65,000 variable and $350,000 fixed. The company allocates fixed and variable costs separately. The level of budgeted fixed costs is determined by the peak-period requirements. The West Plant requires 40% of the peak-period capacity and the East Plant requires 60%. The amount of fixed trucking department cost that should be allocated to the West Plant at the end of the year for performance evaluation purposes is: 10. a.$160,000. b.$204,000. c.$140,000. d.$136,000 e.$158,500 How much of the actual trucking department cost should not be charged to the plants at the end of the year for performance evaluation purposes? 11. a.$10,000 b.$25,500 c.$0 d.$15,700 e. None of the above

The Hudson Block Company has a trucking department that delivers stones to two plants. The budgeted costs for the trucking department are $340,000 per year in fixed costs and $0.30 per ton variable cost. Last year, 70,000 tons of crushed stone were budgeted to be delivered to the West Plant and 100,000 tons of crushed stone to the East Plant. During the year, the trucking department actually delivered 75,000 tons of crushed stone to the West Plant and 90,000 tons to the East Plant. Its actual costs for the year were $65,000 variable and $350,000 fixed. The company allocates fixed and variable costs separately. The level of budgeted fixed costs is determined by the peak-period requirements. The West Plant requires 40% of the peak-period capacity and the East Plant requires 60%. The amount of fixed trucking department cost that should be allocated to the West Plant at the end of the year for performance evaluation purposes is: 10. a.$160,000. b.$204,000. c.$140,000. d.$136,000 e.$158,500 How much of the actual trucking department cost should not be charged to the plants at the end of the year for performance evaluation purposes? 11. a.$10,000 b.$25,500 c.$0 d.$15,700 e. None of the above

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
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 5CE: Johnston Company cleans and applies powder coat paint to metal items on a job-order basis. Johnston...
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The Hudson Block Company has a trucking department that delivers stones to two plants. The budgeted costs for the trucking department are $340,000 per year in fixed costs and $0.30 per ton variable cost. Last year, 70,000 tons of crushed stone were budgeted to be delivered to the West Plant and 100,000 tons of crushed stone to the East Plant. During the year, the trucking department actually delivered 75,000 tons of crushed stone to the West Plant and 90,000 tons to the East Plant. Its actual costs for the year were $65,000 variable and $350,000 fixed. The company allocates fixed and variable costs separately. The level of budgeted fixed costs is determined by the peak-period requirements. The West Plant requires 40% of the peak-period capacity and the East Plant requires 60%. 10. The amount of fixed trucking department cost that should be allocated to the West Plant at the end of the year for performance evaluation purposes is: a.$160,000. b.$204,000. c.$140,000. d.$136,000 e.$158,500 How much of the actual trucking department cost should not be charged to the plants at the end of the year for performance evaluation purposes? 11. a.$10,000 b.$25,500 c.$0 d.$15,700 e. None of the above
Transcribed Image Text:The Hudson Block Company has a trucking department that delivers stones to two plants. The budgeted costs for the trucking department are $340,000 per year in fixed costs and $0.30 per ton variable cost. Last year, 70,000 tons of crushed stone were budgeted to be delivered to the West Plant and 100,000 tons of crushed stone to the East Plant. During the year, the trucking department actually delivered 75,000 tons of crushed stone to the West Plant and 90,000 tons to the East Plant. Its actual costs for the year were $65,000 variable and $350,000 fixed. The company allocates fixed and variable costs separately. The level of budgeted fixed costs is determined by the peak-period requirements. The West Plant requires 40% of the peak-period capacity and the East Plant requires 60%. 10. The amount of fixed trucking department cost that should be allocated to the West Plant at the end of the year for performance evaluation purposes is: a.$160,000. b.$204,000. c.$140,000. d.$136,000 e.$158,500 How much of the actual trucking department cost should not be charged to the plants at the end of the year for performance evaluation purposes? 11. a.$10,000 b.$25,500 c.$0 d.$15,700 e. None of the above
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