Stumbo Company has two production departments, Cutting and Assembling, served by one maintenance department. Budgeted fixed costs for the maintenance department for 20X3 were $60,000, and the variable cost per labour hour was $2.00. Other relevant data for 20X3 are as follows:
Actual maintenance department costs for 20X3 were $64,000 fixed and $120,000 variable.
* in labour hours
-The amount of variable maintenance costs allocated to the Assembling Department should be
A) $56,000.
B) $64,000.
C) $50,000.
D) $48,000.

Question

Stumbo Company has two production departments, Cutting and Assembling, served by one maintenance department. Budgeted fixed costs for the maintenance department for 20X3 were $60,000, and the variable cost per labour hour was $2.00. Other relevant data for 20X3 are as follows:
  Actual maintenance department costs for 20X3 were $64,000 fixed and $120,000 variable.
 * in labour hours
-The amount of variable maintenance costs allocated to the Assembling Department should be
A) $56,000. 
B) $64,000. 
C) $50,000. 
D) $48,000.

Quizplus · Accepted Answer

The Answer of Stumbo Company has two production departments, Cutting and Assembling, served by one maintenance department. Budgeted fixed costs for the maintenance department for 20X3 were $60,000, and the variable cost per labour hour was $2.00. Other relevant data for 20X3 are as follows:
  Actual maintenance department costs for 20X3 were $64,000 fixed and $120,000 variable.
 * in labour hours
-The amount of variable maintenance costs allocated to the Assembling Department should be
A) $56,000. 
B) $64,000. 
C) $50,000. 
D) $48,000.

Stumbo Company Has Two Production Departments, Cutting and Assembling, Served