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Delta Company's Long-Run Average and Actual Machine-Hours for Last Year

Question 10

Multiple Choice

Delta Company's long-run average and actual machine-hours for last year appear below: 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 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

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