Business
Business, 05.05.2020 03:59, zivicion

Stevens Company has two production departments called Assembly and Finishing. The maintenance department serves both production departments. Maintenance costs are allocated based on labor hours. Budgeted fixed costs for the maintenance department are $40,000. Budgeted variable costs for the maintenance department are $4.00 per labor hour. Other relevant data follow:
Assembly Finishing
Capacity available 18,000 labor hours 12,000 labor hours
Capacity used 15,000 labor hours 9,000 labor hours

Actual maintenance department costs:
Fixed $36,000
Variable $100,000
The amount of fixed maintenance department costs allocated to the Assembly DEpartment should be?

answer
Answers: 2

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