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2 Boripak Company has a Maintenance Department that services the equipment in only three operating departments Cutting Forming. and Painting Departments. The cost of this
2 Boripak 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 Budgsted Vans le costs $44,683 $45,000 Fixed costs $30.200 $27500 Data for the three operating departments follow 2000 Cutting Forming Painting Budgeted Machine Hours 37000 7,500 4.500 Actual Machine Hours 27870 7400 2310 Long run average Machine Hours 2,000 7200 Q: How much, if any, of the actual Maintenance Department costs should NOT be charged to the three operating departments for evaluation purposes? AS
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