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The Armtz Corporation has a central maintenance facility. The maintenance facility has only two users, the Machining Department and the Assembly Department. The following data
The Armtz Corporation has a central maintenance facility. The maintenance facility has only two users, the Machining Department and the Assembly Department. The following data apply to the coming budget year: Budgeted costs of operating the maintenance facility for 300,000 to 500,000 labor hours: Fixed costs per year $61,000 Variable costs 6 cents (0.06) per hour Budgeted long-run usage in hours per year: Machining Department 100,000 hours Assembly Department 400,000 hours Budgeted amounts are used to calculate the allocation rates. Actual usage for the year by the Machining Department was 80,000 labor hours and by the Assembly Department was 320,000 labor hours. If a single-rate cost-allocation method is used, what amount of maintenance costs will be budgeted for the Machining Department? (Round any intermediary calculations to the nearest cent.) Enter your answer here Save
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