Fixed Costs Budgeted for Caterton's Maintenance Department for Last Year

Multiple Choice

Fixed costs budgeted for Caterton's Maintenance Department for last year totaled $280,000; actual fixed costs for the year totaled $308,000. The level of budgeted fixed costs is determined by peak-period requirements. The Milling Department requires 15/35 of the peak-period capacity and the Assembly Department requires 20/35.
-How much of the actual fixed maintenance cost for the year should be kept in the Maintenance department and not charged to the other departments for performance evaluation purposes?

A) $0
B) $308,000
C) $28,000
D) $280,000