Fixed Costs Budgeted for Caldwell Company's Maintenance Department for the Year

Multiple Choice

Fixed costs budgeted for Caldwell Company's Maintenance Department for the year totaled $480,000; actual fixed costs for the year totaled $510,000. The level of budgeted fixed costs is determined by peak-period requirements. The Milling Department requires 1/3 of the peak-period capacity and the Assembly Department requires 2/3.
-How much fixed maintenance cost should be charged to the Assembly Department at the end of the year for purposes of measuring performance?

A) $320,000
B) $340,000
C) $360,000
D) $382,500