Ghia Manufacturing Corporation Charges Its Maintenance Department's Service Costs to Two

Multiple Choice

Ghia Manufacturing Corporation charges its Maintenance Department's service costs to two operating departments, Fabrication and Assembly. Charges are made on the basis of machine-hours. Information pertaining to machine-hours for the year follows: The following costs pertain to the Maintenance Department:
For performance evaluation purposes, how much of the Maintenance Department's fixed cost should be charged to the Assembly Department at year-end?

A) $315,000
B) $337,500
C) $345,600
D) $384,000