Johnson Company Has Two Production Departments Called Mixing and Finishing

Multiple Choice

Johnson Company has two production departments called Mixing and Finishing.The maintenance department serves both production departments.Budgeted fixed costs for the maintenance department are $40,000.Budgeted variable costs for the maintenance department are $4.00 per labor hour.Other relevant data follow: Actual maintenance department costs:
The amount of fixed maintenance department costs allocated to the Finishing Department should be ________.

A) $11,250
B) $14,000
C) $16,000
D) $18,000