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Maintenance Cost Is Allocated to Wakshaw's Three Producing Departments Based

Question 83

Multiple Choice

Maintenance cost is allocated to Wakshaw's three producing departments based on the machine hours used in each department.The maintenance cost expected for June is $200,000.The three departments had the following usage for June:  Meek  Mild  Sales $600,000$400,000 Direct materials $100,000$120,000 Direct labor cost $108,000$180,000 Labor hourly cost $12,00$12,00\begin{array}{lrr}&\text { Meek }&\text { Mild }\\\text { Sales } & \$ 600,000 & \$ 400,000 \\\text { Direct materials } & \$ 100,000 & \$ 120,000 \\\text { Direct labor cost } & \$ 108,000 & \$ 180,000 \\\text { Labor hourly cost } & \$ 12,00 & \$ 12,00\end{array} How much maintenance cost should be allocated to the fabrication department for June?


A) $60,000
B) $100,000
C) $66,667
D) $6,000

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