James Company Has Two Production Departments Called Mixing and Finishing

Multiple Choice

James Company has two production departments called Mixing and Finishing.The maintenance department serves both production departments.Budgeted fixed costs for the maintenance department are $30,000.Budgeted variable costs for the maintenance department are $5.00 per labor hour.Actual maintenance department costs are $36,000 fixed and $100,000 variable.Other relevant data follow: The amount of variable maintenance department costs allocated to the Mixing Department should be ________.

A) $48,000
B) $62,500
C) $75,000
D) $100,000