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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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