Fixed costs budgeted for Caterton's Maintenance Department for last year totaled $280,000; actual fixed costs for the year totaled $308,000. The level of budgeted fixed costs is determined by peak-period requirements. The Milling Department requires 15/35 of the peak-period capacity and the Assembly Department requires 20/35.
-How much fixed maintenance cost should be charged to the Assembly department at the end of the year for purposes of measuring performance?
A) $160,000
B) $176,000
C) $173,500
D) $147,800

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The Answer of Fixed costs budgeted for Caterton's Maintenance Department for last year totaled $280,000; actual fixed costs for the year totaled $308,000. The level of budgeted fixed costs is determined by peak-period requirements. The Milling Department requires 15/35 of the peak-period capacity and the Assembly Department requires 20/35.
-How much fixed maintenance cost should be charged to the Assembly department at the end of the year for purposes of measuring performance?
A) $160,000
B) $176,000
C) $173,500
D) $147,800

Fixed Costs Budgeted for Caterton's Maintenance Department for Last Year