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Darren Corporation's Maintenance Department Provides Services to the Company's Two

Question 129

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Darren Corporation's Maintenance Department provides services to the company's two operating divisions - the Paints Division and the Stains Division.The variable costs of the Maintenance Department are budgeted based on the number of cases produced by the operating departments.The fixed costs of the Maintenance Department are budgeted based on the number of cases produced by the operating departments during the peak period.Data appear below:
Maintenance Department:Budgeted variable costBudgeted total fued costPaints Diwision:Percentage of peak period capacity requiredActual casesStains Division:Percentage of peak period capacity required Actual cases$2 per  case $830,00030%20,00070%63,000\begin{array}{c}\begin{array}{|l|}\hline \text {Maintenance Department:}\\\hline \text {Budgeted variable cost}\\\\\hline \text {Budgeted total fued cost}\\\hline \text {Paints Diwision:}\\\hline \text {Percentage of peak period capacity}\\ \text { required}\\\hline \text {Actual cases}\\\hline \text {Stains Division:}\\\hline \text {Percentage of peak period capacity}\\\hline \text { required}\\ \text { Actual cases}\\\hline\end{array}\begin{array}{r|}\hline\\\hline\$ 2 \text { per } \\\text { case }\\\hline \$ 830,000 \\\hline\\\hline 30 \% \\\\\hline 20,000 \\\hline\\\hline70\%\\\\\hline 63,000\\\hline\end{array}\end{array} For performance evaluation purposes,how much Maintenance Department cost should be charged to the Paints Division at the end of the year?


A) $298,800.
B) $498,000.
C) $289,000.
D) $240,000.

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