# Balluff, Inc. Has two production departments, Assembly and Finishing, and two service departments, Maintenance and Personnel. Direct Costs:

Balluff, Inc. Has two production departments, Assembly and Finishing, and two service departments, Maintenance and Personnel. Direct Costs: Maintenance Department \$30,000 Personnel Department 24,600 Assembly Department 70,000 Finishing Department 50,000 Assume that Maintenance Department costs are allocated equally among the production departments. How much is allocated to each department? Assume that Bannister Bicycles buys a handlebar at \$52 for each of its bicycles. Total handlebar cost is A cost that changes in total in proportion to changes in the number of bicycles assembled (variable cost). What is the total handlebar cost when 1,000 bicycles are assembled? 1,000 units x \$52 = \$52,000 What is the total handlebar cost when 3,500 bicycles are assembled? Assume that Bannister Bicycles incurred \$94,500 in a given year for the leasing of its plant. This is a fixed cost with respect to the number of bicycles assembled. These costs are unchanged in total over a designated ran

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