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Fixed costs of the maintenance department are budgeted at $30.000 per year. The foxed maintenance costs are incurred in order to service ong-run average demand. The actual fixed maintenance cost was actually $32,000. How much fixed maintenance cost should be charged to Department B at the end of the year for performance evaluation purposes? Multiple Choice $18,000 $12.000 $14,400 $15.000

Fixed costs of the maintenance department are budgeted at $30.000 per year. The foxed maintenance costs are incurred in order to service ong-run average demand. The actual fixed maintenance cost was actually $32,000. How much fixed maintenance cost should be charged to Department B at the end of the year for performance evaluation purposes? Multiple Choice $18,000 $12.000 $14,400 $15.000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Fixed costs of the maintenance department are budgeted at $30,000 per year. The fixed maintenance costs are incurred in order to service long-run average demand. The actual fixed maintenance cost was actually $32,000. How much fixed maintenance cost should be charged to Department B at the end of the year for performance evaluation purposes? Multiple Choice $18,000 $12,000 $14,400 $15,000
Transcribed Image Text:Fixed costs of the maintenance department are budgeted at $30,000 per year. The fixed maintenance costs are incurred in order to service long-run average demand. The actual fixed maintenance cost was actually $32,000. How much fixed maintenance cost should be charged to Department B at the end of the year for performance evaluation purposes? Multiple Choice $18,000 $12,000 $14,400 $15,000
Fox Company has the following data concerning the machine-hours in its operating departments: Department A Department B 30,000 24,000 Machine-hours-long-run average Machine-hours-actual 10,000 9,000 Department C 20,000 18,000 Fixed costs of the maintenance department are budgeted at $30,000 per year. The fixed maintenance costs are incurred in order to service long-run average demand. The actual fixed maintenance cost was actually $32,000. How much fixed maintenance cost should be charged to Department B at the end of the year for performance evaluation purposes?
Transcribed Image Text:Fox Company has the following data concerning the machine-hours in its operating departments: Department A Department B 30,000 24,000 Machine-hours-long-run average Machine-hours-actual 10,000 9,000 Department C 20,000 18,000 Fixed costs of the maintenance department are budgeted at $30,000 per year. The fixed maintenance costs are incurred in order to service long-run average demand. The actual fixed maintenance cost was actually $32,000. How much fixed maintenance cost should be charged to Department B at the end of the year for performance evaluation purposes?
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