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

Question 82

Multiple Choice

Maintenance cost is allocated to Wakshaw's three producing departments based on the machine hours used in each department. The maintenance cost for June was $200,000. The three departments had the following usage for June:  Denartment  Machine hours used Direct lahor hours used  Assembly 6002,000 Fabrication 6005,000 Testing 8003,000\begin{array}{lll}\text { Denartment }& \text { Machine hours used }& \text {Direct lahor hours used }\\\hline\text { Assembly } & 600 & 2,000 \\\text { Fabrication } & 600 & 5,000 \\\text { Testing } & 800 & 3,000\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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