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Business, 06.05.2020 00:18 braedenmoses7
Todd 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 $30,000. Budgeted variable costs for the maintenance department are $5.00 per labor hour. Other relevant data follow:
Assembly Finishing
Capacity available20,000 labor hours15,000 labor hours
Capacity used15,000 labor hours9,000 labor hours
Actual maintenance department costs:
Fixed$36,000
Variable$100,000
The amount of variable maintenance department costs allocated to the Finishing Department should be .
A) $37,500
B) $42,000
C) $45,000
D) $75,000
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