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 And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter19: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 2CMA: Adam Corporation manufactures computer tables and has the following budgeted indirect manufacturing...

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Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead costs per month include supervision of 98,000, depreciation of 76,000, and other overhead of 245,000. Required: 1. Prepare a flexible budget for all costs of production for the following levels of production: 160,000 units, 170,000 units, and 175,000 units. 2. What is the per-unit total product cost for each of the production levels from Requirement 1? (Round each unit cost to the nearest cent.) 3. What if Nashler Companys cost of maintenance rose to 0.22 per unit? How would that affect the unit product costs calculated in Requirement 2?
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