Multiple Choice
Boone Manufacturing has two production departments, Mixing and Finishing, served by one maintenance department. Budgeted fixed costs for the maintenance department for 20X3 were $20,000, and the variable cost per labour hour was $3.00. Other relevant data for 20X3 are as follows:
Actual maintenance department costs for 20X3 were $24,000 fixed and $50,000 variable.
*in labour hours
-The amount of fixed maintenance costs allocated to the Finishing Department should be
A) $12,000.
B) $ 8,000.
C) $ 9,333.
D) $ 7,500.
Correct Answer:

Verified
Correct Answer:
Verified
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