Boone Manufacturing has two production departments, Mixing and Finishing, served by one maintenance department. Budgeted fixed costs for the maintenance department for 20X3 were $20,000, and the variable cost per labour hour was $3.00. Other relevant data for 20X3 are as follows:
Actual maintenance department costs for 20X3 were $24,000 fixed and $50,000 variable.
* in labour hours
-The amount of variable maintenance costs allocated to the Finishing Department should be
A) $21,000.
B) $24,000.
C) $18,750.
D) $18,000.

Question

Boone Manufacturing has two production departments, Mixing and Finishing, served by one maintenance department. Budgeted fixed costs for the maintenance department for 20X3 were $20,000, and the variable cost per labour hour was $3.00. Other relevant data for 20X3 are as follows:
  Actual maintenance department costs for 20X3 were $24,000 fixed and $50,000 variable.
 * in labour hours
-The amount of variable maintenance costs allocated to the Finishing Department should be
A) $21,000. 
B) $24,000. 
C) $18,750. 
D) $18,000.

Quizplus · Accepted Answer

The Answer of Boone Manufacturing has two production departments, Mixing and Finishing, served by one maintenance department. Budgeted fixed costs for the maintenance department for 20X3 were $20,000, and the variable cost per labour hour was $3.00. Other relevant data for 20X3 are as follows:
  Actual maintenance department costs for 20X3 were $24,000 fixed and $50,000 variable.
 * in labour hours
-The amount of variable maintenance costs allocated to the Finishing Department should be
A) $21,000. 
B) $24,000. 
C) $18,750. 
D) $18,000.

Boone Manufacturing Has Two Production Departments, Mixing and Finishing, Served