The Speed Aircraft Corporation has a central materials laboratory. The laboratory has
only two users, the Large Plane Department and the Small Plane Department. The
following data apply to the year:
Operating
Departments
Initial Request-
Technician Hours
Actual Usage -
Technician Hours
Large Plane
Department
81,000
70,000
Small Plane
Department
69,000
65,000
Total
150,000
135,000
Actual central materials laboratory costs for the year was $816,000 - Fixed costs
$600,000; Variable costs $216,000.
If a dual-rate cost-allocation method is used, what amount of central materials
laboratory costs will be allocated to the Large Plane Department?
Example of Answer: 4000 (No comma, space, decimal point, or $ sign)