Fox Company Has the Following Data Concerning the Machine-Hours in Its

Multiple Choice

Fox Company has the following data concerning the machine-hours in its operating departments: Fixed costs of the maintenance department are budgeted at $30,000 per year. The fixed maintenance costs are incurred in order to service long-run average demand. The actual fixed maintenance cost was actually $32,000. How much fixed maintenance cost should be charged to Department B at the end of the year for performance evaluation purposes?

A) $12,000
B) $14,400
C) $15,000
D) $18,000