Question
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 16,900 Department B 24,000 26,200 Total 40,000 43,100 How much of the service departments variable costs should not be charged to either Department A or B? Multiple Choice $1,800 $3,100 $4,900 $8,000
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