We Be Warehouse Fitness Equipment incurred $80,000 of commonfixed costs and $120,000 of common variable costs. Data areprovided below for the capacity allowed and the capacityused.
| Department | Capacity
Provided in Hours | Capacity
Used in Hours |
| Barbell Department | 500 | 400 |
| Sauna Department | 300 | 400 |
For both departments, common fixed costs are to be allocated onthe basis of capacity provided and common variable costs are to beallocated on the basis of capacity used.
The fixed and variable costs allocated to the SaunaDepartment are:
| | a) $30,000 and $60,000 respectively |
| | b) $50,000 and $60,000, respectively. |
| | c) $50,000 and $75,000, respectively. |
| | d) $30,000 and $50,000, respectively. |
| | e) $30,000 and $75,000, respectively. |
