Frame Corporations' Maintenance Department 6. Frame Corporation's Maintenance Department provides services to the company's two operating divisions-the Paints Division and the Stains Division. The variable costs of the Maintenance Department are budgeted based on the number of cases produced by the operating departments. The fixed costs of the Maintenance Department are determined by the number of cases produced by the operating departments during the peak period. Data appear below: Maintenance Department Budgeted variable cost.. Budgeted total fixed cost $246,000 $328,000 $254,014 Actual total variable cost Actual total fixed cost. $331,940 Paints Division 35% Percentage of peak period capacity required Budgeted cases...... 12,000 Actual cases 12,010 Stains Division Percentage of peak period capacity required 65% Budgeted cases..... 29,000 Actual cases 28,960 How much of the Maintenance Department's actual costs should not be allocated to the operating divisions at the end of the year? A) $12,134 B) $8,194 C) $11,954 D) $3,940 E) $8,014 PLEASE SHOW YOUR WORK I DONT UNDERSTAND WHY THE ANSWER IS E) AND NOT A)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
100%
Give me answer within 45 min please I will give you upvote immediately its very urgent ...thankyou...
Frame Corporations' Maintenance Department
6. Frame Corporation's Maintenance Department provides services to the company's two operating divisions-the Paints
Division and the Stains Division. The variable costs of the Maintenance Department are budgeted based on the number of
cases produced by the operating departments. The fixed costs of the Maintenance Department are determined by the
number of cases produced by the operating departments during the peak period. Data appear below:
Maintenance Department
$246,000
$328,000
Budgeted variable cost.
Budgeted total fixed cost
Actual total variable cost
Actual total fixed cost.
$254,014
$331,940
Paints Division
Percentage of peak period capacity required.
35%
Budgeted cases...
12,000
Actual cases.
12,010
Stains Division
Percentage of peak period capacity required.
************
Budgeted cases...
65%
29,000
28,960
Actual cases.
How much of the Maintenance Department's actual costs should not be allocated to the operating divisions at the end of
the year?
A) $12,134
B) $8,194
C) $11,954
D) $3,940
E) $8,014
PLEASE SHOW YOUR WORK
I DONT UNDERSTAND WHY THE ANSWER IS E)
AND NOT A)
Transcribed Image Text:Frame Corporations' Maintenance Department 6. Frame Corporation's Maintenance Department provides services to the company's two operating divisions-the Paints Division and the Stains Division. The variable costs of the Maintenance Department are budgeted based on the number of cases produced by the operating departments. The fixed costs of the Maintenance Department are determined by the number of cases produced by the operating departments during the peak period. Data appear below: Maintenance Department $246,000 $328,000 Budgeted variable cost. Budgeted total fixed cost Actual total variable cost Actual total fixed cost. $254,014 $331,940 Paints Division Percentage of peak period capacity required. 35% Budgeted cases... 12,000 Actual cases. 12,010 Stains Division Percentage of peak period capacity required. ************ Budgeted cases... 65% 29,000 28,960 Actual cases. How much of the Maintenance Department's actual costs should not be allocated to the operating divisions at the end of the year? A) $12,134 B) $8,194 C) $11,954 D) $3,940 E) $8,014 PLEASE SHOW YOUR WORK I DONT UNDERSTAND WHY THE ANSWER IS E) AND NOT A)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Financial Planning
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education