The cost of operating the Quality Control Department of Ankeny Manufacturing includes $650,000 of fixed costs and $550,000 of variable costs. The department normally budgets 20,000 inspection hours a year. Two departments, Fabrication and Assembly, receive quality control checks. Fabrication is budgeted at 1,000 hours a month, while Assembly is budgeted the remainder. In August, Fabrication used 1,200 inspection hours and Assembly used 900 hours.
How much did each department receive in quality control costs, assuming a single rate is used based on budgeted hours?

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The Answer of The cost of operating the Quality Control Department of Ankeny Manufacturing includes $650,000 of fixed costs and $550,000 of variable costs. The department normally budgets 20,000 inspection hours a year. Two departments, Fabrication and Assembly, receive quality control checks. Fabrication is budgeted at 1,000 hours a month, while Assembly is budgeted the remainder. In August, Fabrication used 1,200 inspection hours and Assembly used 900 hours.
How much did each department receive in quality control costs, assuming a single rate is used based on budgeted hours?

The Cost of Operating the Quality Control Department of Ankeny