MetalSheet Corporation is organized into two operating divisions (Fabrication and Finishing). The Maintenance Department provides services to both the Fabrication Division and the Finishing Division. The Maintenance Department's variable costs are budgeted at $31 per machine hour, with fixed costs budgeted at $287,000 for the year. Fabrication Division Finishing Division Multiple Choice O At the end of the year, the actual variable costs of the Maintenance Department were $215,963 and fixed costs were $272,980. The Fabrication Division recorded a total of 1,830 machine hours for the year and the Finishing Division recorded a total of 4,940 machine hours. As MetalSheet Corporation is evaluating performance at the end of the year, how much of the Maintenance Department cost should be charged to the Finishing Division? OO O $382,172 $354,040 $373,121 Percentage of Peak. Period Capacity $362,698 Required 30% 70% Hours Planned 1,800 4,980

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Chapter1: Financial Statements And Business Decisions
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MetalSheet Corporation is organized into two operating divisions (Fabrication and Finishing). The Maintenance Department provides services to both the Fabrication Division and the Finishing Division. The
Maintenance Department's variable costs are budgeted at $31 per machine hour, with fixed costs budgeted at $287,000 for the year.
Fabrication Division
Finishing Division
Multiple Choice
At the end of the year, the actual variable costs of the Maintenance Department were $215,963 and fixed costs were $272,980. The Fabrication Division recorded a total of 1,830 machine hours for the year and the
Finishing Division recorded a total of 4,940 machine hours. As MetalSheet Corporation is evaluating performance at the end of the year, how much of the Maintenance Department cost should be charged to the
Finishing Division?
$382,172
$354,040
$373,121
Percentage of Peak
Period Capacity
Required
30%
70%
$362,698
Hours
Planned
1,800
4,980
Transcribed Image Text:15 MetalSheet Corporation is organized into two operating divisions (Fabrication and Finishing). The Maintenance Department provides services to both the Fabrication Division and the Finishing Division. The Maintenance Department's variable costs are budgeted at $31 per machine hour, with fixed costs budgeted at $287,000 for the year. Fabrication Division Finishing Division Multiple Choice At the end of the year, the actual variable costs of the Maintenance Department were $215,963 and fixed costs were $272,980. The Fabrication Division recorded a total of 1,830 machine hours for the year and the Finishing Division recorded a total of 4,940 machine hours. As MetalSheet Corporation is evaluating performance at the end of the year, how much of the Maintenance Department cost should be charged to the Finishing Division? $382,172 $354,040 $373,121 Percentage of Peak Period Capacity Required 30% 70% $362,698 Hours Planned 1,800 4,980
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