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
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
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
Section: Chapter Questions
Problem 7E: Columbia Products Inc. has two divisions, Salem and Seaside. For the month ended March 31, Salem had...
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