Rapone Corporation's Maintenance Department provides services to the company's two operating divisions-the Paints Division and the Stains Division.The variable costs of the Maintenance Department are budgeted based on the number of cases produced by the operating departments.The fixed costs of the Maintenance Department are budgeted based on the number of cases produced by the operating departments during the peak period.Data appear below: For performance evaluation purposes,how much Maintenance Department cost should be charged to the Paints Division at the end of the year?
A)$261,600
B)$396,000
C)$277,200
D)$220,000

Question

Rapone Corporation's Maintenance Department provides services to the company's two operating divisions-the Paints Division and the Stains Division.The variable costs of the Maintenance Department are budgeted based on the number of cases produced by the operating departments.The fixed costs of the Maintenance Department are budgeted based on the number of cases produced by the operating departments during the peak period.Data appear below:  For performance evaluation purposes,how much Maintenance Department cost should be charged to the Paints Division at the end of the year?
A)$261,600 
B)$396,000 
C)$277,200 
D)$220,000

Quizplus · Accepted Answer

The amount of cost that would be charged to the Paints Division at the end of the year would be as follows:
 11eaaee8_669e_a4f3_933a_9925decc09f0_TB5186_00

Rapone Corporation's Maintenance Department Provides Services to the Company's Two