Question

If a support department's costs were budgeted to be $150,000 and actual costs incurred by the support department were $200,000, the total amount of the support department's costs that should be allocated to other departments is a.$150,000. b.$200,000. c.$350,000. d.$50,000.

Answer 1

Answer:

The correct answer is A

Explanation:

Support department is the department which provides support to the other departments so that they could complete their orders. And the budgeted cost to the support department is $150,000 but the actual amount of cost incurred is $200,000.

The aggregate amount which should be allocated to the other department will be $150,000, as it consider the budgeted amount.