Stevens Company Has Two Production Departments Called Assembly and Finishing

Multiple Choice

Stevens Company has two production departments called Assembly and Finishing.The maintenance department serves both production departments.Maintenance costs are allocated based on labor hours.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:
$\begin{array}{ll}&\text { Assembly }&\text { Finishing }\\\text { Capacity available }&\text { 18,000 labor hours } & 12,000 \text { labor hour: } \\\text { Capacity used }&\text { 15,000 labor hours } & 9,000 \text { labor hours }\end{array}$
Actual maintenance department costs:
$\begin{array}{ll}\text { Fixed } & \$ 36,000 \\\text { Variable } & \$ 100,000\end{array}$
The amount of fixed maintenance department costs allocated to the Assembly Department should be ________.

A) $16,000
B) $22,500
C) $24,000
D) $25,000