Question
Swift Company has a Maintenance Department which provides service to line departments A and B. The cost driver in the Maintenance Department is machine hours
Swift Company has a Maintenance Department which provides service to line departments A and B. The cost driver in the Maintenance Department is machine hours worked by the line departments. The Maintenance Department planned variable cost of $8,000 for June. Actual variable cost for the month totaled $15,000. Budget and actual machine hours in the operating departments for the month are shown below. How much variable maintenance cost should be charged to Dept. A for performance evaluation (end of period)? Dept. A Dept. B Budget machine hours 22,000 18,000 Actual machine hours 30,000 20,000
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