Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Nafth Company has an Equipment Services Department that performs all needed maintenance work on the equipment in the company's Fabrication and Assembly Departments. Costs of

Nafth Company has an Equipment Services Department that performs all needed maintenance work on the equipment in the company's Fabrication and Assembly Departments. Costs of the equipment Services Department are charged to the Fabrication and Assembly Departments on the basis of direct labor-hours. Data on direct labor-hours for last year follow:

Fabrication Assembly Total
Budgeted direct labor-hours 20,000 50,000 70,000
Actual direct labor-hours 25,000 55,000 80,000
Peak-period direct labor-hours 30,000 70,000 100,000

For the year just ended, the company budgeted its variable maintenance costs at $210,000 for the year. Actual variable maintenance costs for the year totaled $255,000.

For performance evaluation purposes, how much of the $255,000 of actual variable maintenance cost should be charged to the Assembly Department at the end of the year just ended?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Hospitals What They Are And How They Work

Authors: Donald J. Griffin

4th Edition

0763791091, 9780763791094

More Books

Students also viewed these General Management questions