Samuel Company has two production departments called Mixing and Finishing.The maintenance department serves both production departments.Budgeted fixed costs for the maintenance department are $40,000.Budgeted variable costs for the maintenance department are $4.00 per labor hour.Other relevant data follow: Actual maintenance department costs:
The amount of fixed maintenance department costs allocated to the Mixing Department should be ________.
A)$12,000
B)$14,000
C)$20,000
D)$24,000

Question

Samuel Company has two production departments called Mixing and Finishing.The maintenance department serves both production departments.Budgeted fixed costs for the maintenance department are $40,000.Budgeted variable costs for the maintenance department are $4.00 per labor hour.Other relevant data follow:  Actual maintenance department costs:
 The amount of fixed maintenance department costs allocated to the Mixing Department should be ________.
A)$12,000 
B)$14,000 
C)$20,000 
D)$24,000

Quizplus · Accepted Answer

The Answer of Samuel Company has two production departments called Mixing and Finishing.The maintenance department serves both production departments.Budgeted fixed costs for the maintenance department are $40,000.Budgeted variable costs for the maintenance department are $4.00 per labor hour.Other relevant data follow:  Actual maintenance department costs:
 The amount of fixed maintenance department costs allocated to the Mixing Department should be ________.
A)$12,000 
B)$14,000 
C)$20,000 
D)$24,000

Samuel Company Has Two Production Departments Called Mixing and Finishing