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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Nafth Company has an Equipment Services Department that performs all needed maintenance work on the equipment in the company's Fabrication and Assembly Departments. Costs of the equipment Services Department are charged to the Fabrication and Assembly Departments on the basis of direct labor-hours. Data on direct labor-hours for last year follow: Fabrication Assembly Total Budgeted direct labor-hours 30,000 60,000 90,000 Actual direct labor-hours 35,000 65,000 100,000 Peak-period direct labor-hours 40,000 80,000 120,000 For the year just ended, the company budgeted its variable maintenance costs at $310,000 for the year. Actual variable maintenance costs for the year totaled $355,000. For performance evaluation purposes, how much of the $355,000 of actual variable maintenance cost should be charged to the Assembly Department at the end of the year just ended? (Do not round your intermediate calculations.)
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Korvanis Corporation operates a Medical Services Department for its employees. Charges to the company's operating departments for the variable costs of the Medical Services Department are based on the actual number of employees in each department. Charges for the fixed costs of the Medical Services Department are based on the long-run average number of employees in each operating department. Variable Medical Services Department costs are budgeted at $57 per employee. Fixed Medical Services Department costs are budgeted at $639,300 per year. Actual Medical Services Department costs for the most recent year were $105,800 for variable costs and $645,000 for fixed costs. Data concerning employees in the three operating departments follow: Budgeted number of employees Cutting 604 Milling 293 Assembly 918 Actual number of employees for the most recent year 504 393 Long-run average number of employees 1,050 700 818 1,750 Required: 1. Determine the Medical Services Department charges for the…
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