MetalSheet Corporation is organized into two operating divisions (Fabrication and Finishing). The Maintenance Department provides services to both the Fabrication Division and the Finishing Division. The Maintenance Department's variable costs are budgeted at $31 per machine hour, with fixed costs budgeted at $287,000 for the year. Fabrication Division Finishing Division Multiple Choice O At the end of the year, the actual variable costs of the Maintenance Department were $215,963 and fixed costs were $272,980. The Fabrication Division recorded a total of 1,830 machine hours for the year and the Finishing Division recorded a total of 4,940 machine hours. As MetalSheet Corporation is evaluating performance at the end of the year, how much of the Maintenance Department cost should be charged to the Finishing Division? OO O $382,172 $354,040 $373,121 Percentage of Peak. Period Capacity $362,698 Required 30% 70% Hours Planned 1,800 4,980
MetalSheet Corporation is organized into two operating divisions (Fabrication and Finishing). The Maintenance Department provides services to both the Fabrication Division and the Finishing Division. The Maintenance Department's variable costs are budgeted at $31 per machine hour, with fixed costs budgeted at $287,000 for the year. Fabrication Division Finishing Division Multiple Choice O At the end of the year, the actual variable costs of the Maintenance Department were $215,963 and fixed costs were $272,980. The Fabrication Division recorded a total of 1,830 machine hours for the year and the Finishing Division recorded a total of 4,940 machine hours. As MetalSheet Corporation is evaluating performance at the end of the year, how much of the Maintenance Department cost should be charged to the Finishing Division? OO O $382,172 $354,040 $373,121 Percentage of Peak. Period Capacity $362,698 Required 30% 70% Hours Planned 1,800 4,980
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...
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