(Appendix 12B)Delta Company's Long-Run Average and Actual Machine-Hours for Last

Multiple Choice

(Appendix 12B) Delta Company's long-run average and actual machine-hours for last year appear below: Fixed maintenance costs of the company's maintenance service department are budgeted at $60, 000 per year.These fixed costs are incurred in order to support long-run average demand.How much of this cost should be charged to Department B at the end of the year?

A) $30, 000
B) $22, 500
C) $24, 000
D) $18, 000