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Blossom Company has a Maintenance Department that services the equipment in only three operating departments: Cutting, Forming, and Painting Departments. The cost of this servicing

Blossom 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 $19,000

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?

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