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Maintenance Department: budgeted variable cost, $2 per case; and budgeted total fixed cost, $830,000. Paints Division: percentage of peak period capacity required; 30%; and actual cases, 20,000. Stains Division: percentage of peak period capacity required, 70%; and actual cases, 63,000. For performance evaluation purposes, the amount the Maintenance Department cost should be charged to the Paints Division at the end of the year is _

Sagot :

Answer: $289,000

Explanation:

For performance evaluation purposes, the amount of Maintenance Department cost that should be charged to the Paints Division at the end of the year will be calculated thus:

= (20000 × $2) + ($830,000 × 30%)

= $40,000 + ($830000 × 0.3)

= $40000 + $249,000

= $289,000

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