1. Edwin, Inc. has 2 branches--Northern and Southern branches.

The company's fixed costs that are traceable to the Northern branch is $175,000, while fixed costs that are traceable to the Southern branch is $180,000. The Northern branch is further divided into two segments based on the customer types: the local and the nonlocal. Traceable fixed cost for the local is $68,250, and traceable fixed cost for the nonlocal is $46,600.

Q:) How much is the common fixed costs of the two order types for the Northern branch?

2.

Bucky Company has a Maintenance Department that services the equipment in only three operating departments: Cutting, Forming, and Painting Departments. The cost of this servicing is charged to the operating departments on the basis of machine-hours. Data relating to the Maintenance Department costs are below:

Actual Budgeted

Variable costs

$44,683

$45,000

Fixed costs

$30,200

$23,800

Data for the three operating departments follow:

Cutting Forming Painting

Budgeted Machine-Hours

3,000 7,500 4,500

Actual Machine-Hours

2,870 7,490 4,350

Long-run average Machine-Hours

2,800 7,200 4,000

Q:) How much, if any, of the actual Maintenance Department costs should NOT be charged to the three operating departments for evaluation purposes?