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Assume a company has only one service department and two operating departments (A and B). The service departments budgeted and actual variable costs for the

Assume a company has only one service department and two operating departments (A and B). The service departments budgeted and actual variable costs for the period were $80,000 and $88,000, respectively. The budgeted and actual units of service provided to the operating departments were as follows:

Budgeted Units of Service Actual Units of Service
Department A 16,000 16,700
Department B 24,000 26,600
Total 40,000 43,300

How much of the service departments variable costs should not be charged to either Department A or B?

Multiple Choice

$1,400

$3,300

$4,700

$8,000

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