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

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Bluebell 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 $44,6831 $45,000 Fixed costs $30,2001 $25,000 Data for the three operating departments follow: Budgeted Machine Hours Actual Machine-Hours Long-run average Machine-Hours Cutting 3,000 2,870 2,800 Forming 7,5001 7,490 7,200 Painting 4,500 4,350 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? A: $

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