Mangiamele 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 budgeted based on 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 $ 4 per case $ 693,000 Paints Division: 30% Percentage of peak period capacity required Actual cases 18,000 Stains Division: 70% Percentage of peak period capacity required Actual cases 59,000 For performance evaluation purposes, how much Maintenance Department cost should be charged to the Paints Division at the end of the year? A. $234,000 B. $500,500 C. $279,900 D. $300,300

Mangiamele 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 budgeted based on 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 $ 4 per case $ 693,000 Paints Division: 30% Percentage of peak period capacity required Actual cases 18,000 Stains Division: 70% Percentage of peak period capacity required Actual cases 59,000 For performance evaluation purposes, how much Maintenance Department cost should be charged to the Paints Division at the end of the year? A. $234,000 B. $500,500 C. $279,900 D. $300,300

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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